GST Collections Approach Rs1.65 Trillion in December 2023

The revenue decreased by 1.8% compared to November, as per official data. In December, Goods and Services Tax (GST) collections in New Delhi reached nearly ₹1.65 lakh crore, marking a 10.3% year-on-year growth. This achievement ranks as the sixth-highest in the past 77 months since the implementation of the new tax system in July 2017. The positive trend is attributed to the steady performance of the Indian economy and improved compliance.

In December 2023, gross revenue, reflecting business transactions from November, reached ₹1,64,882 crore. This marked the seventh time in the 2023-24 fiscal year and the ninth time since 2017 that it surpassed the ₹1.60 lakh crore milestone. The consistent performance is attributed to robust domestic demand and a buoyant economy.

Experts highlight that the strong GST revenue serves as an indicator of economic health, showcasing the resilience of the Indian economy despite global challenges. India's GDP recorded a growth of 7.6% in the second quarter of 2023-24 and 7.7% in the first half of the fiscal year. In its December Monetary Policy Committee meeting, the Reserve Bank of India (RBI) revised its GDP growth forecast for FY24 to 7%, up from the 6.5% projected in October.

While the current collection is slightly lower than the previous month, consistently surpassing the 1.6 lakh crore mark instills significant fiscal confidence, even in the face of various global challenges.

Data released by the Union Finance Ministry on Monday indicates that Gross GST revenues for the first nine months of the current financial year (April-December 2023) have exceeded ₹14.97 lakh crore, marking a 12% year-on-year growth from ₹13.40 lakh crore in the same period last year. Krishna Gopal Varshney, CEO of Mytrionline, noted, "Increased GST collections over the 9-month period signal a stable Indian economy, improved tax administration, and heightened consumption."

Addressing the December collections, the finance ministry highlighted that it marks the seventh month this year with collections surpassing Rs1.60 lakh crore, suggesting that this monthly benchmark is becoming a new normal. 

Out of the total gross GST revenue of ₹1,64,882 crore in December, the central GST (CGST) contributed ₹30,443 crore, state GST (SGST) amounted to ₹37,935 crore, and integrated GST (IGST) reached ₹84,255 crore, which includes ₹41,534 crore collected on the import of goods. 

Additionally, the cess collection for the month stood at ₹12,249 crore. The GST regime imposes compensation cess on luxury goods and sin products such as liquor, cigarettes, other tobacco products, aerated water, automobiles, and coal. This cess is scheduled to conclude on March 31, 2026.

While overall collections witnessed a significant increase, some key states experienced a notable slowdown in monthly revenue growth. Rajasthan and Chhattisgarh reported a mere 1% year-on-year growth in GST revenue, reaching ₹3,828 crore and ₹2,613 crore, respectively, in December. Similarly, Jharkhand saw only a 4% annualized growth in the period, amounting to ₹2,362 crore. 

On the other hand, major states showed robust double-digit growth in December, including Maharashtra (14%, ₹26,814 crore), Karnataka (17%, ₹11,759 crore), Tamil Nadu (19%, ₹9,888 crore), Uttar Pradesh (12%, ₹8,011 crore), and Haryana (22%, ₹8,130 crore). 

Out of the revenue generated in December, the government allocated ₹40,057 crore to CGST and ₹33,652 crore to SGST from IGST. Following the standard settlement, the total revenue for the Centre and the states in December 2023 is ₹70,501 crore for CGST and ₹71,587 crore for SGST, as mentioned in the finance ministry's statement.

Also Read: Income Tax Department Witnesses Increase in ITR Submissions for Assessment Year 2023-2024

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