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New Delhi, Nov 1 (IANS) SBI Research on Saturday said the strong pace of GST collections not only defies absurd fears of a massive decline but also the fears of a decline expressed by states after rationalization of GST revenues.
Defying wild speculations of a big decline expressed by many economic voices, gross GST collections for October 25 (actually September returns filed in October) rose 4.6 per cent to Rs 1.96 lakh crore.
While gross domestic collections grew by 2 per cent year-on-year, gross import revenues for October increased by 12.8 per cent.
The e-way bill generated in the month of September was the highest till date at Rs 13.2 crore.
Symbolic of the increased ease in business processes, total refunds for October stand at Rs 26,934 crore, showing a growth of 39.6 per cent year-on-year.
Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India, said, “Assuming that states experience similar gains (and losses) as in October, we estimate GST revenues for FY2026, in which on a very preliminary basis, most states experience positive gains for the entire financial year post rationalization, confirming that overall states should remain net gainers post GST rationalization.”
While the Union’s own estimate of potential revenue foregone due to GST rate rationalization was Rs 48,000 crore, several research agencies and their key faces had pegged the revenue loss at a stratospheric range of Rs 10 lakh crore.
“Evidence from earlier rounds of GST rate changes, such as in July 2018 and October 2019, suggest that rationalization does not necessarily weaken revenue collections. Instead, the evidence points to a temporary adjustment phase followed by stronger inflows,” the report said.
–IANS
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