Representative image showing GST.
Credit: iStock Photo
New Delhi: Revenue collection from Goods and Services Tax (GST) increased 7.3% year-on-year to Rs 1.77 lakh crore in December, even though on a sequential basis it was lower, reflecting softening demand at the end of the festive season, as per official data released on Wednesday.
The December GST revenue collection is lower than Rs 1.82 lakh crore mop up recorded in November 2024. Despite the sequential decline, GST revenue remained above Rs 1.7 lakh crore for the tenth consecutive month, signifying stability in the country’s indirect tax framework.
Revenue collection from Karnataka, the second largest contributor to the country’s GST kitty, increased by 7% to Rs 12,526 crore in December 2024 from Rs 11,759 crore recorded in the same month last year.
Maharashtra, which is the largest contributor, recorded a robust growth of 9%. December collection in the state stood at Rs 29,260 crore. Tamil Nadu registered 11% year-on-year growth while Gujarat posted a modest growth of 4%.
Revenue collection in major populated states like Uttar Pradesh, Bihar, Madhya Pradesh and West Bengal was sluggish.
“The below 5% increase in major states like Uttar Pradesh, Bihar, West Bengal, Gujarat and Madhya Pradesh would be an area of concern for policymakers,” said MS Mani, Partner at Deloitte India.
On the sequential decline in GST collection, Saurabh Agarwal, Tax Partner, EY India, said, “India's recent GST collections have slowed down slightly, which is typical after the holiday season. It’s well in line with expectations as we have been witnessing a slight decrease in consumer spending over the past few months.”
Cumulative GST collection in April-December period rose to Rs 16.33 lakh crore, which is 9.1% higher when compared with the same period last year. In April 2024, GST revenue collections touched a peak of Rs 2.1 lakh crore, which is the highest-ever so far.
While the overall growth in GST revenue during April-December period from domestic sales increased by over 10%, revenue from imports increased by sluggish 2%. Also the quantum of export related refunds have gone up substantially.
“Given the slowdown in GST collections, it will be interesting to see if the Government takes specific measures to boost consumption in the upcoming budget. One of the ways to boost consumption is to rationalise the GST rates, which the GST council is currently working on,” said Pratik Jain, Partner at PwC India.