New Delhi, Nov. 2 -- Gross Goods and Services Tax (GST) revenue in October neared Rs.1.96 lakh crore-the fifth highest monthly collection since the tax regime's 2017 launch-despite capturing a September when consumers postponed purchases awaiting the massive rate reductions effective September 22. October's figures primarily reflect September's business activity, when consumers deferred spending for the rate cuts. GST collection data for any month captures the preceding month's business activities. The modest growth validates the government's GST 2.0 strategy, with November collections data expected to show the first full month of post-rate cut festive buying that ministers claim has surged. Domestic revenue growth was muted at 2%, rising to Rs.1.45 lakh crore from Rs.1.42 lakh crore in October 2024. Gross tax revenue from imports jumped 12.84% to Rs.50,884 crore, pushing cumulative gross GST collections to Rs.1,95,936 crore-a 4.6% increase compared to the same month last year -according to government data released on Saturday. The GST Council on September 3 approved slashing rates on 375 items from household essentials to automobiles, with a revenue impact of about Rs.48,000 crore based on 2023-24 consumption patterns. Net GST collection after refunds saw 0.6% growth at Rs.1,69,002 crore compared to Rs.1,68,054 crore in October 2024, as refunds jumped 40%-releasing working capital for businesses, particularly exporters. Saurabh Agarwal, tax partner at EY India, said the government's commitment to resolve working capital issues for exporters and address concerns around the inverted duty structure is a significant positive development. "This certainty in the tax regime and reduction of working capital leakages are vital confidence boosters for the investor community, reinforcing the ease of doing business," he said. Tax experts said the subdued October figures were anticipated and predicted robust collections ahead. "The GST collections reflect muted momentum in September primarily due to rate rationalisation effect and deferred consumer spending ahead of the festive season," Agarwal said. "This anticipated lag is likely to be compensated by more robust numbers in the next month, driven by seasonal buoyancy." MS Mani, partner at Deloitte India, said the "marginal growth of 4.6% in gross collection is on account of postponement of supplies from September 1-21 for many products whose rates were reduced" from September 22. The abolition of compensation cess, especially on automobiles, also impacted collections. "The fact that GST collections have grown, though marginally, with significantly reduced rates indicates that consumption remains robust as brought out by other economic indicators as well," Mani said....