Hyderabad: Inwhat comes as a major Dasara-Diwali jackpot to the cash-strapped state government, Telangana registered an appreciable 10 per cent growth in GST revenues in October.

Although there was a reduction in tax slabs as part of GST rate rationalisation, the state’s GST collections increased quite significantly, which makes for a welcome change from September’s minus-five growth rate.

As against the Rs 4,998 crore generated in September, October added an additional Rs 700 crore to the state exchequer. Officials from the state commercial taxes department pointed out that the October revenue would help the government to meet some financial requirements in the third quarter of the current financial year.

Meanwhile, as per official figures, Telangana earned Rs 5,726 crore GST revenue in October as against Rs 5,211 crore for the corresponding period last year. “It is a good sign that the state economy has recovered from September’s minus growth. The 10 per cent growth will boost the state financial position and help in releasing more money into the market”, the officials said. Meanwhile, the commercial taxes wing will be strengthening its tax collection network with the support of the GST department in its bid to recover long pending dues from traders by the year-end.

It should be noted that the festive season created huge business, a splurge that came as a shot in the arm vis-à-vis September collections.

Officials said that the tax reduction under GST rate rationalisation could also be one of the main reasons for an increase in people’s consumption capacity last month.

An increase in the sale of automobiles, optimal use of the services sector, mainly hospitality, bumper festive sales in shopping malls and other commodities bolstered revenue collections, department officials said.