GST collections up 7.3pc at ₹1.77 lakh crore in December 2024

THEBUSINESSBYTES BUREAU

NEW DELHI, JANUARY 1, 2025

India’s Goods and Services Tax (GST) collections surged by 7.3% year-on-year to reach ₹1.77 lakh crore in December 2024, as per government data released on Wednesday. This increase reflects sustained economic momentum and robust compliance trends across the country.

Breaking down the components of the December GST collections, Central GST (CGST) accounted for ₹32,836 crore, State GST (SGST) contributed ₹40,499 crore, Integrated GST (IGST) stood at ₹47,783 crore, and cess collections amounted to ₹11,471 crore. Revenues from domestic transactions grew by 8.4% year-on-year, totaling ₹1.32 lakh crore, while GST from imports rose by about 4%, reaching ₹44,268 crore.

Despite December’s slightly lower figure compared to November’s GST mop-up of ₹1.82 lakh crore, the collections highlight consistent growth. November recorded an 8.5% annual increase, with April 2024 standing as the peak month with a record-high collection exceeding ₹2.10 lakh crore.

Refunds issued in December totalled ₹22,490 crore, marking a significant 31% increase from the previous year. After accounting for these refunds, net GST collections rose by 3.3%, settling at ₹1.54 lakh crore.

The robust GST collections have contributed significantly to India’s fiscal health during the current financial year, enabling the government to mobilize resources effectively and maintain fiscal discipline. Official data indicates that the fiscal deficit for the first eight months (April to November) of the financial year stands at ₹8.47 lakh crore, which is 52.5% of the budget estimate for the year. This positions India well on its fiscal consolidation path, aligning with the government’s target to reduce the fiscal deficit to 4.9% of GDP in 2024-25 from 5.6% in the previous year.

The steady rise in GST collections underscores India’s strong macroeconomic fundamentals and improved compliance mechanisms, reflecting positive trends in both domestic consumption and international trade. With the government focusing on enhanced tax administration and economic reforms, the GST regime continues to be a cornerstone of India’s fiscal framework.