India's December GST Collections at Rs 1.65 Lakh Crore, Marking 10% YoY Growth

2 Jan 2024 , 01:30 PM

India’s Goods and Services Tax (GST) collections for December 2023 reached Rs 1.65 lakh crore, reflecting a robust 10% year-on-year growth, as announced by the Ministry of Finance on January 1. While this figure is 2% lower than the Rs 1.68 lakh crore collected in November, it marks the tenth consecutive month of GST collections surpassing the Rs 1.5-lakh-crore mark.

The data revealed that the average monthly GST collection for the fiscal year 2023-24 stands at Rs 1.66 lakh crore. Over the years, monthly GST collections have shown an upward trend, transitioning from an average of under Rs 1 lakh crore per month in its first year (2017-18) to reaching an average of Rs 1.51 lakh crore in the fiscal year 2022-23.

The April-December 2023 period witnessed a robust 12% year-on-year growth in gross GST collections, totaling Rs 14.97 lakh crore compared to Rs 13.40 lakh crore in the corresponding period of the previous year.

Breaking down the December collections, Central GST amounted to Rs 30,443 crore, State GST stood at Rs 37,935 crore, Integrated GST reached Rs 84,255 crore, and cess was Rs 12,249 crore. Additionally, the government settled Rs 40,057 crore to Central GST and Rs 33,652 crore to State GST from Integrated GST. After settlement, the total revenue for the month was Rs 70,501 crore for the Centre and Rs 71,587 crore for State GST.

The growth in GST collections during the first nine months of the fiscal year has been deemed encouraging. Analysts expect an even higher collection in January 2024, partly attributed to an increase in GST audits and notices in recent months to meet statutory timelines.

While December’s GST collections are slightly lower than November’s figures, the month still demonstrates double-digit year-on-year growth, albeit down from the 15% recorded in November. The 2023-24 Budget outlines the Centre’s expectation of a 12% rise in GST collections for the current financial year.