December Sees Sluggish Growth in GST Revenue, Hits 3-Month

India's Goods and Services Tax (GST) revenues reached ₹1,64,800 crore in December 2023, marking a year-on-year growth of 10.3%. However, this growth rate is the lowest in three months, compared to a 15.1% rise in the previous month. The Finance Ministry stated that domestic transactions contributed to a 13% increase in revenues compared to the same month last year.

Growth in Goods Imports:

While the Ministry did not provide specific figures, estimations suggest that revenues from goods imports grew at a slower pace of 3.65%. The average monthly gross GST collection in the first nine months of 2023–24 stood at ₹1.66 lakh crore, compared to ₹1.49 lakh crore in the previous year.

Strong Increase in Gross Goods and Services Tax Collection:

Gross GST collection increased by 12% year over year from April to December 2023, reaching ₹14.97 lakh crore. The gross GST income for December was ₹1,64,882 crore, which comprised ₹30,443 crore from the central GST (CGST), ₹37,935 crore from state GST (SGST), and ₹84,255 crore from integrated GST (IGST). The amount collected for the GST Compensation Cess was ₹12,249 crore.

State-wise Revenue Growth:

Thirteen states recorded revenue growth of 13% or more, matching the national average growth for domestic revenues. Arunachal Pradesh, Haryana, Goa, Jammu and Kashmir, and Tamil Nadu led the pack with significant growth rates. However, Sikkim experienced a 13% contraction in revenues, while Meghalaya's revenue growth remained flat. Several other states, including Rajasthan, Chhattisgarh, Gujarat, Madhya Pradesh, Kerala, and Uttar Pradesh, recorded slower GST revenue growth than the national average.

Despite a slight decline compared to the previous month, India's GST revenues remain above ₹1.6 lakh crore, providing fiscal confidence amid global headwinds. The festive season and the settlement of previous dues have contributed to this continued growth. The government has settled a significant portion of the revenues for CGST and SGST, ensuring a total revenue of ₹70,501 crore for CGST and ₹71,587 crore for SGST in December 2023.