India's GST Collection Sees 7.3% Growth in Dec 2024

India's Goods and Services Tax (GST) collection continued its upward trajectory with a 7.3% year-on-year (YoY) growth, reaching Rs 1.77 lakh crore in December 2024, according to data released by the government on January 1, 2025. However, this marked a 3% dip compared to the Rs 1.82 lakh crore collected in November 2024.

The December figures reflect steady growth in GST revenues but also point to a slowdown in consumption, likely influenced by the post-festive season. Experts suggest that the weaker performance in December is temporary, with expectations for a rebound in the March quarter.

Breakdown of December's GST Collection:

• Central GST (CGST): Rs 32,836 crore
• State GST (SGST): Rs 40,499 crore
• Integrated GST (IGST): Rs 47,783 crore (including Rs 18,310 crore from imports)
• Cess: Rs 11,471 crore (including Rs 1,258 crore from imports)

GST revenues from domestic transactions, including both goods and services sold within the country, grew by 8.4% YoY, amounting to Rs 1.32 lakh crore. Meanwhile, revenues from imports saw a modest increase of 4% YoY, reaching Rs 44,268 crore.

One notable development in December was a sharp 31% increase in refunds, which amounted to Rs 22,490 crore, compared to Rs 19,259 crore issued in December 2023. This surge in refunds impacted net GST collection, which stood at Rs 1.54 lakh crore, a 3.3% YoY growth after adjusting for the refunds.

Comparison with Previous Months:

• November 2024: GST collections amounted to Rs 1.82 lakh crore, reflecting an 8.5% YoY growth.
• October 2024: The collection reached Rs 1.87 lakh crore, an increase of 9% YoY, marking the second-highest GST collection on record.
• April 2024: The highest-ever monthly GST collection was recorded at Rs 2.10 lakh crore.

Despite the month-on-month decline in December, the overall trend remains positive, signaling continued improvements in compliance and economic activity. The December drop is largely attributed to seasonal factors, including reduced consumption post-festivities.

With the increase in refunds and stable growth in domestic transactions, India’s GST collections remain a vital indicator of the country’s economic resilience and recovery.