GST collections surged by 10% to reach Rs 1.64 lakh crore in December.
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GST collections surged by 10%- The GST collections in December showed a 10% increase to approximately Rs 1.64 lakh crore compared to Rs 1.49 lakh crore in the same month the previous year, continuing the upward trend. According to a statement from the finance ministry on Monday, the gross Goods and Services Tax (GST) collection for the April-December 2023 period saw a strong 12% growth, amounting to Rs 14.97 lakh crore compared to Rs 13.40 lakh crore in the same period of the previous year.
The average gross GST collection for the first nine months of the year was Rs 1.66 lakh crore, a 12% increase from the same period of FY23, which had an average of Rs 1.49 lakh crore. In December 2023, the gross GST revenue was Rs 1,64,882 crore, including CGST at Rs 30,443 crore, SGST at Rs 37,935 crore, IGST at Rs 84,255 crore (including Rs 41,534 crore from import of goods), and cess at Rs 12,249 crore (including Rs 1,079 crore from import of goods).
This is the seventh month of the year with collections exceeding Rs 1.60 lakh crore. In December 2023, the government settled Rs 40,057 crore to CGST and Rs 33,652 crore to SGST from IGST, resulting in total revenue of Rs 70,501 crore for CGST and Rs 71,587 crore for SGST. Revenues for December 2023 were 10.3% higher than the GST revenues in the same month of the previous year. Additionally, revenues from domestic transactions during the month were 13% higher than those from a year ago.
Deloitte India partner MS Mani said that the strong collections during the current fiscal period show significant economic growth across sectors, independent of festive or seasonal factors.
While significant states have maintained their economic expansion, it is imperative to conduct a more in-depth analysis to comprehend the stagnation in GST collections in Rajasthan, Chhattisgarh, and Jharkhand. Given the remarkable growth surpassing the fiscal objectives for FY24, it is probable that the interim budget or vote on account anticipated on February 1 will establish elevated targets for FY25 and lay the groundwork for the subsequent phase of GST reforms.