November GST Collection Lowest Since September 2024

India’s goods and services tax collection fell to a 14-month low in November, reflecting the impact of GST rate cuts implemented from September 22. Gross GST revenues declined 4% year-on-year to ₹1.75 trillion.

Collections had risen 4.6% in October, but that spike was likely driven by pent-up consumption ahead of the rate cut that had been announced on August 15, a surge that also coincided with festive-season spending. November’s softer reading suggests a reversion to normal consumption patterns, alongside the structural effect of lower GST rates.

The data also shows a loss of domestic momentum: domestic GST revenues fell 2.3% to ₹1.24 trillion. In contrast, import-linked receipts rose 10.2% to ₹459.76 billion, indicating firmer inflows on the external trade front.

A sharper decline was seen in the compensation cess, which slipped to ₹40.06 billion from ₹129.50 billion a year earlier — a steep 69% fall. This reflects both the recent rate changes and a shift in consumption away from cess-heavy categories.

The government has announced to do away with cess.