On the first day of the new year, there was uplifting news on the economic front as the Goods and Services Tax (GST) revenue collection witnessed a significant annual increase of 10% in December. According to the Ministry of Finance, the GST revenue collection for December amounted to approximately ₹1.64 lakh crore. This marks a notable surge compared to the corresponding period last year when the collection stood at ₹1.49 lakh crore.
The Finance Ministry reports a consistent growth trend in GST revenue collection for the past seven months, with December’s figures reflecting a robust performance. The consecutive months have seen collections exceeding ₹1.60 lakh crore, showcasing the resilience of the GST revenue system.
For the period from April to December 2023, the cumulative GST revenue collection reached ₹14.97 lakh crore, representing a strong growth of 12% compared to the same period in the previous fiscal year when the collection was ₹13.40 lakh crore. The average monthly GST revenue collection for the first nine months of the financial year 2023-24 stands at ₹1.66 lakh crore, reflecting a 12% increase over the corresponding period in the fiscal year 2022-23, where the average monthly collection was ₹1.49 lakh crore.
In the breakdown of GST revenue collection for December, Central GST (CGST) contributed ₹30,443 crore, State GST (SGST) amounted to ₹37,935 crore, Integrated GST (IGST) totaled ₹84,255 crore (including ₹41,534 crore collected on the import of goods). Additionally, Compensation Cess, collected as a part of GST, reached ₹12,249 crore, including ₹1,079 crore collected on the import of goods.
The positive growth trajectory in GST revenue is seen as a favorable indicator for the Indian economy, providing a solid start to the new financial year and reinforcing the effectiveness of the Goods and Services Tax system. The Finance Ministry continues to monitor economic indicators closely, and the sustained growth in GST collections bodes well for the country’s fiscal health.