New Delhi - Diwali shopping saved economy. GST collections jumped 23% to Rs 2.31 lakh crore in October, second highest since GST launch 2017, after April 2024's Rs 2.37 lakh crore. October is second month of Q3, festive season - Navratri, Dussehra, Dhanteras, Diwali.
Break-up: Central GST Rs 43,000 cr, State GST Rs 53,000 cr, Integrated GST Rs 1.15 lakh cr, cess Rs 20,000 cr. Domestic transactions growth 25%, imports 18%. Average monthly GST FY26 now Rs 1.95 lakh cr vs Rs 1.68 lakh cr FY25.
Economists: surge due to auto sales - Maruti sold 2 lakh units, electronics, gold jewellery, plus better compliance - e-invoicing, Al detection.
Contrast: FPIs pulled out Rs 34,843 crore from Indian equities in Oct, second consecutive month heavy outflows due to crude rise, US rates, earnings outlook. Net buyers returned last week Rs 6,300 cr.
Analytically, GST is proxy for consumption - resilient despite global headwinds. India's power consumption grew 21.88% to 159.76 BU in Oct, Coal India production rose 19.3% to 67.2 MT - all festive industrial demand.
But sustainability? November may see dip after Diwali. Also inflation - CPI September 5.54% - erodes purchasing power.
For government, higher GST means more fiscal space - fiscal deficit target 4.5% may be met, extra money for welfare.
Tags: #GST #GSTCollection #FestiveDemand #Economy #Diwali #FPIs #PowerConsumption #CoalIndia #FinanceMinistry #IndianEconomy