Proposed GST slab of 35% is a deterrent for growth
As per a cross-country World Bank study on sugar-sweetened beverages, India has one of the highest tax rates for carbonated soft drinks (CSDs) at a total tax rate of 40 per cent as of 2023.
Goods and Services Tax (GST) collections climbed to a six-month peak of Rs 1.87 trillion in October. The collections remained above the Rs 1.7 trillion threshold for the eighth consecutive month.
The collections were up 8.1 per cent from the previous month and saw an 8.9 per cent increase year-on-year. October 2024 recorded the second-best GST mop-up. The highest ever collection was in April 2024 at over Rs 2.10 lakh crore. In October, GST from domestic transactions grew 10.6 per cent to Rs 1.42 lakh crore, while revenues from tax on imports rose about 4 per cent to Rs 45,096 crore.
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According to government data, the CGST, SGST, IGST, and cess all increased year-on-year in October.
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From April to October 2024, gross GST collections on a year-to-date basis reached Rs 12.74 trillion, marking a 9.4 per cent increase compared to Rs 11.64 trillion during the same period last year. Net GST revenue, after refunds, amounted to Rs 1.68 trillion for October 2024, reflecting a 7.9 per cent increase from Rs 1.55 trillion in October 2023.
So far in 2024, the total GST collection has been 9.4 per cent higher at Rs 12.74 lakh crore, as against Rs 11.64 lakh crore mopped up in the corresponding period of 2023. During the financial year 2023-24, the total gross GST collection was recorded at Rs 20.18 lakh crore, with an 11.7 per cent increase compared to the previous fiscal year.
The average monthly collection for the fiscal year, that ended in March 2024 stood at Rs 1.68 lakh crore, surpassing the previous year’s average of Rs 1.5 lakh crore.
Ladakh posted the highest growth rate at 30 per cent followed by Kerala at 20 per cent and Haryana at 15 per cent. In contrast, however, Arunachal Pradesh and the ‘Other Territory’ category recorded declines of 33 per cent and 37 per cent, respectively.
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