India's GST Collections Rise 7.3% YoY in December, Reaching Rs 1.77 Lakh Crore

India's GST Collections Rise 7.3% YoY in December, Reaching Rs 1.77 Lakh Crore

India's GST Collections Rise 7.3% YoY in December, Reaching Rs 1.77 Lakh Crore

Gold jewellery consumption in India declined by 11% in December 2024 to 115 tonnes, while gold imports dropped to 2.3billion∗∗comparedto∗∗2.3 billion** compared to **3 billion in December 2023. Despite slower growth, GST collections remained above Rs 1.7 lakh crore for the tenth consecutive month, highlighting sustained economic momentum.

Key Points

  • Total Gross GST Revenue: Rs 1.77 lakh crore (7.3% YoY growth).
    • Central GST: Rs 32,836 crore.
    • State GST: Rs 40,499 crore.
    • Integrated GST (IGST): Rs 47,783 crore.
    • Cess: Rs 11,471 crore.
  • Domestic Supply Collections: Increased by 8.4% to Rs 132,110 crore.
  • Imports Revenue: Grew by 4% to Rs 44,268 crore.
  • Refunds: Disbursed refunds rose by 31% to Rs 22,490 crore, while net GST collections increased by 3.3% to Rs 1,54,139 crore.

What This Means

The rise in GST collections demonstrates the strength of India's economy and an expanding taxable base. The government's focus on improving compliance and efficiency, such as through the introduction of a new e-way bill system, is driving these positive results. This system is aimed at reducing compliance costs and ensuring smooth operations.

Looking Ahead

The government anticipates continued growth in GST collections, supported by:

  1. A steadily recovering economy.
  2. Efforts to enhance GST efficiency.
  3. The growth of the e-commerce sector.

Conclusion

India reached a milestone in December 2024 with GST collections of Rs 1.77 lakh crore, a 7.3% increase from the previous year. Although this figure is lower than the record Rs 2.1 lakh crore collected in April 2024, the overall trend is positive. The festive season may have impacted consumption patterns, but the government remains optimistic about further improvement in GST revenue, bolstering the country's economic strength in the months ahead.