GST collections surge 23% to Rs 2.31 lakh crore in October

• The Goods and Services Tax (GST) collections jumped 22.9 per cent year-on-year to the second-highest level of over Rs 2.31 lakh crore in October, according to government data released on November 1.

• October is the second consecutive month when monthly gross GST crossed Rs 2 lakh crore, and second only to the record about Rs 2.43 lakh crore mop-up in April.

• Also, the 22.9 per cent year-on-year growth clocked during the month is the fastest recorded pace of gross mop-up in the current financial year.

• In April-October, gross GST collection grew 13.2 per cent to over Rs 14.77 lakh crore. Net collections rose 13 per cent to over Rs 12.69 lakh crore.

What is Goods and Services Tax (GST)?

• The introduction of the Goods and Services Tax (GST) regime in the country was a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of central and state taxes into a single tax, the aim was to mitigate cascading or double taxation in a major way and pave the way for a common national market.

• Before implementation of the GST regime in the country, the issue was deliberated in detail by the empowered committee of state finance ministers, select committee of Rajya Sabha and Parliamentary Standing Committee on Finance.

• After detailed and prolonged deliberation, the Constitution (One Hundred and First Amendment) Act, after ratification by 50 per cent of the states, was assented to by the President on September 8, 2016. 

• Thereafter, Central Goods and Services Tax (CGST) Act, Integrated Goods and Services Tax (IGST) Act, Union Territory Goods and Services Tax (UTGST) Act, and Goods and Services Tax (Compensation to States) Act were enacted in order to achieve a successful rollout of the GST regime in the country from July 1, 2017.

• With GST, India took a quantum leap towards the goal of establishing ‘one nation, one market’ by dismantling multiple taxes and unifying them into a single tax.

• When it was launched, there were four GST slabs of 5 per cent, 12 per cent, 18 per cent and 28 per cent.

• With newly introduced reforms on September 22, 2025, the GST now has a two-tier structure, wherein the majority of goods and services will attract tax of 5 and 18 per cent. 

• A 40 per cent tax is levied on ultra luxury items while tobacco and related products continue to be in the 28 per cent plus cess category.

(The author is a trainer for Civil Services aspirants.)