On Monday, the government reported a 10 percent year-on-year increase in Goods and Services Tax (GST) collections, reaching ₹1.65 lakh crore, as disclosed by the Ministry of Finance on January 1.
While the December GST collections of ₹1.65 lakh crore are marginally lower by 2 percent compared to the ₹1.68 lakh crore recorded in November, it marks the tenth consecutive month where monthly GST collections have exceeded the ₹1.5-lakh-crore threshold. The recent GST data establishes an average monthly collection of ₹1.66 lakh crore for the fiscal year 2023-24.
The trajectory of monthly GST collections has shown a consistent upward trend over the years. In its inaugural year in 2017-18, collections averaged under ₹1 lakh crore per month. However, facing challenges posed by the pandemic in 2020-21, there was a swift ascent, and by the fiscal year 2022-23, collections had reached an average of ₹1.51 lakh crore per month.
The finance ministry stated, “During the April-December 2023 period, gross GST collection witnessed a robust 12 percent year-on-year growth, reaching ₹14.97 lakh crore, as against ₹13.40 lakh crore collected in the same period of the previous year.”
In December, Central GST recorded ₹30,443 crore, State GST amounted to ₹37,935 crore, Integrated GST stood at ₹84,255 crore, and cess accounted for ₹12,249 crore.
The government allocated ₹40,057 crore to Central GST and ₹33,652 crore to State GST from the Integrated GST pool. Subsequently, after settlements, the total revenue for the month reached ₹70,501 crore for the Centre and ₹71,587 crore for State GST.
While the total GST collection in December reflects a slight decrease compared to November, it marks another month of double-digit year-on-year growth, albeit lower than the 15 percent observed in November. The year-on-year increase in GST collections for November was the highest in 11 months.
As outlined in the fiscal year 2023-24 Budget, the central government anticipates a 12 percent increase in GST collections for the ongoing financial year.
