Telangana posts ₹5,726 crore GST revenue in October
HYDERABAD: Telangana has emerged among the top states in Goods and Services Tax (GST) revenue growth, posting a 10% rise in October compared to the same month last year.
The state collected ₹5,726 crore in GST, matching Karnataka’s growth rate, according to figures released by the Centre. The festive demand during Dussehra and Deepavali boosted sales, helping Telangana achieve record-level revenues.
Festive boost lifts revenue
Last October, Telangana’s GST collection stood at ₹5,211 crore, meaning an increase of about ₹515 crore this year. Nationwide, GST revenue reached ₹1,45,052 crore, marking a modest 2% rise.
The Centre also said that under Integrated GST (IGST) settlements, ₹26,334 crore was transferred to Telangana’s State GST (SGST) share till last month, reflecting a 4% increase from ₹25,306 crore a year ago.
Economists see November as a ‘litmus test’
Experts say November figures will reveal the real impact of the recent GST slab reductions on state revenues. “Sales during the festive season offset potential losses from the rate cuts. November data will show whether this trend sustains,” said an economist.
With the GST Council having lowered slabs from 12% and 28% to 5% and 18% from September 22, nearly 90% of goods now attract lower taxes. While the move provided relief to consumers, analysts expect a marginal dip in government revenues.
Rate cuts offset by festive demand
Despite concerns over reduced tax rates, Telangana’s collections improved due to higher purchases of consumer durables, electronics, vehicles and apparel during the festival period. “Increased spending compensated for the lower tax rates,” said analysts.
Officials believe if November revenue stays around ₹5,200 crore, the impact of the rate cuts will be minimal. However, if collections drop close to ₹4,998 crore, the September figure it will indicate that the lower tax rates have affected revenue.
