The growth of GST revenue reached 3-months low in the month of December.

The growth of GST revenue reached 3-months low in the month of December.

Last month, the government collected revenues of more than ₹1,64,800 crore which is about 1.8% less than what was collected in November.

This marks the seventh consecutive month with receipts exceeding ₹1.60 lakh crore, as reported by the Ministry.

Introduction

In December 2023, India’s Goods and Services Tax (GST) revenues went beyond ₹1,64,800 crore. But, the growth compared to the previous year slowed down to 10.3% marking a three-month low, as in the previous month the rise was 15.1%.

The amount collected through GST in December, for transactions done in November 2023, is roughly 1.8% less than the nearly ₹1.68 lakh crore collected in the previous month.It’s still the third-highest monthly collection since the GST launch in July 2017.

The Finance Ministry mentioned on Monday that revenues from domestic transactions including services imported, are 13% higher compared to the same month last year.

Import of goods

The Ministry didn’t detail the trends in revenue growth from goods imports, but it is estimated that they increased at a slower rate of 3.65%.

The average monthly gross GST collection in the first nine months of 2023-24 is ₹1.66 lakh crore compared to ₹1.49 lakh crore a year ago. This marks the seventh month this year with collections exceeding ₹1.60 lakh crore, said by the Ministry.

From April to December 2023, gross GST collection showed a strong 12% year-on-year growth reaching ₹14.97 lakh crore, compared to ₹13.40 lakh crore in the same period last year.

December’s gross GST revenue of ₹1,64,882 crore included central GST (CGST) revenues of ₹30,443 crore, State GST (SGST) collection of ₹37,935 crore, and ₹84,255 crore of Integrated GST (IGST), including ₹41,534 crore from goods imports. GST Compensation Cess collections were ₹12,249 crore, with ₹1,079 crore on goods imports.

Growth in states

Thirteen States achieved revenue growth of 13% matching the national average growth for domestic revenues.

Arunachal Pradesh with a 44% increase, followed by Haryana (22%), Goa, and the former State of Jammu and Kashmir (20%) and Tamil Nadu (19%).

While Manipur  experienced a 21% decline in November, recording a 9% rise in December, Sikkim experienced a 13% decline, and Meghalaya’s trend remained the same. Additionally, a dozen other States, including Rajasthan and Chhattisgarh (1% growth each), Gujarat (7%), Madhya Pradesh (11%), and Kerala and Uttar Pradesh (12% each), had slower GST revenue growth than the national average.

Conclusion

Although the collection is a bit less than the previous month, overtaking ₹1.6 lakh crore indicates fiscal confidence in global challenges.

The government has allocated ₹40,057 crore to CGST and ₹33,652 crore to SGST from IGST revenues. After the usual settlements the total revenue for CGST is ₹70,501 crore and for SGST it is ₹71,587 crore in December 2023, as mentioned by the Ministry.

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