The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, FEBRUARY 1, 2025
Goods and Services Tax (GST) collections for January soared 12.3% year-on-year to ₹1.96 lakh crore, driven by higher economic activity, according to official data released on Saturday. The revenue breakdown includes ₹1.47 lakh crore from domestic transactions and ₹48,382 crore from imports. This marks a significant uptick from December’s collections of ₹1.77 lakh crore, which had risen 7.3% over the previous year. However, the pace of growth had moderated from November’s 8.5% increase, reflecting a slowdown in economic activity following the festive season.
In January, Central GST (CGST) collections stood at ₹36,100 crore, while State GST (SGST) revenue amounted to ₹44,900 crore. Integrated GST (IGST) collections remained strong at ₹1.01 lakh crore, and GST cess revenue was reported at ₹13,400 crore.
The government, in its FY25 Budget presented on Saturday, has estimated GST revenues to rise 11% to ₹11.78 lakh crore, including Central GST and compensation cess. Overall, gross tax revenue for FY25 is projected at ₹38.40 lakh crore, marking an 11.72% increase from FY24. This includes ₹22.07 lakh crore from direct taxes, comprising personal income tax and corporate tax, and ₹16.33 lakh crore from indirect taxes, including GST and customs duties.
To meet fiscal requirements, the government has set net market borrowing at ₹11.54 lakh crore, with additional funds sourced from small savings schemes. Meanwhile, the gross borrowing target for FY26 has been revised upward by 5.7% to ₹14.82 lakh crore, compared to the earlier estimate of ₹14.01 lakh crore for FY25. With GST collections maintaining a strong growth trajectory, the government remains optimistic about sustained revenue buoyancy to support its fiscal plans.
