GST Collections: India’s revenue growth dips to a 3-month low in December

India’s Goods and Services Tax (GST) revenues for December 2023 have surpassed ₹1,64,800 crore, marking a three-month low in year-on-year growth at 10.3%, lanugo from the previous month’s 15.1%. Despite this, it’s the seventh subsequent month with receipts exceeding ₹1.60 lakh crore, demonstrating a resilient trend in GST collections.

The December GST kitty, reflecting transactions from November 2023, is approximately 1.8% lower than the substantial ₹1.68 lakh crore placid in November. The Finance Ministry, in a statement on Monday, revealed that revenues from domestic transactions, including import of services, witnessed a noteworthy 13% increase compared to the same month the previous year.

While the Ministry did not provide specific growth trends for revenues from goods imports, estimates by The Hindu suggest a milder pace of 3.65%. The stereotype monthly gross GST hodgepodge in the first nine months of 2023-24 stands at ₹1.66 lakh crore, a significant rise from ₹1.49 lakh crore in the preceding year.

Highlighting the robust performance during the April-December 2023 period, the Finance Ministry reported a 12% year-on-year growth, reaching ₹14.97 lakh crore, compared to ₹13.40 lakh crore placid in the same period of the previous year. December’s gross GST revenue of ₹1,64,882 crore comprised ₹30,443 crore of inside GST (CGST), ₹37,935 crore of state GST (SGST), and ₹84,255 crore of integrated GST (IGST), including ₹41,534 crore from import of goods. GST Compensation Cess collections stood at ₹12,249 crore, with ₹1,079 crore levied on goods imports.

Thirteen states recorded revenue growth of 13%, in line with the national stereotype for domestic revenues or more. Leading the pack were Arunachal Pradesh (44% growth), Haryana (22%), Goa, Jammu and Kashmir (20% each), and Tamil Nadu (19%). However, Sikkim experienced a 13% contraction, while Meghalaya’s trend remained flat. Some states, including Rajasthan and Chhattisgarh, saw slower GST revenue growth unelevated the national average.

Despite the slight dip in December collections compared to the previous month, experts like Abhishek Jain, partner and national throne for indirect tax at KPMG, highlight the fiscal conviction provided by the resulting trend whilom ₹1.6 lakh crore. Factors contributing to this sustained growth include festive cheer and unfurled settlement of dues from 2017-18 and 2018-19.

The government’s settlements include ₹40,057 crore to CGST and ₹33,652 crore to SGST from IGST revenues. The total revenue for December 2023, without regular settlement, stands at ₹70,501 crore for CGST and ₹71,587 crore for SGST, as noted by the Finance Ministry.

In summary, India’s GST collections for December 2023, while slightly lower than the previous month, walkout resilience tween global uncertainties and sustained fiscal confidence, with a robust year-on-year growth of 10.28%. The cumulative gross GST hodgepodge for April-December 2023 reflects a 12% increase compared to the same period in the previous fiscal year.

GST collections in December 2023 stands close to ₹1.64 lakh crores with YoY growth of 12%.

📺 Press release: https://t.co/LAtEe1xh7S#GSTcollections https://t.co/u6raBN9c1E pic.twitter.com/MXNOjkFgtG

— GST Insights 🇮🇳 (@InGSTPortal) January 1, 2024