New Delhi : The Finance Ministry reported on Wednesday that India’s gross Goods and Services Tax (GST) collections for December 2024 reached Rs 1.77 lakh crore, marking a 7.3 percent increase compared to the previous year.
This achievement maintains the streak of collections remaining above Rs 1.7 lakh crore for the tenth consecutive month, demonstrating sustained revenue performance.
Despite this milestone, December witnessed the slowest pace of year-on-year growth in three months.
The cumulative GST collections for the April-December period totalled Rs 16.33 lakh crore, showing a 9.1 percent annual growth. This falls short of the finance ministry’s earlier projection of 11 percent growth, potentially signalling a moderation in economic activity.
The collection data reveals a notable disparity between domestic and import-based revenue sources.
Domestic GST collections for the April-December period reached Rs 12.37 lakh crore, growing at 10.1 percent, while import-related collections amounted to Rs 3.96 lakh crore, increasing by 6 percent.
December specifically showed domestic collections growth of 8.4 percent, while import-related collections grew by just 3.9 percent.
The slower-than-anticipated growth has prompted discussions about potential policy interventions in the upcoming 2025-26 Budget.
PwC India partner Pratik Jain suggests that GST rate rationalisation, currently under consideration by the GST council, could be one approach to stimulate consumption in the economy.
A significant increase in refund disbursements was observed in December, rising by 45.3 percent year-on-year to Rs 22,490 crore.
This led to net collections of Rs 1.54 lakh crore, representing a modest 3.3 percent growth.
The April-December period saw net GST collections reach Rs 14.49 lakh crore, growing at 8.6 percent, while refunds totalled Rs 1.89 lakh crore, showing a 13.5 percent increase compared to the previous year.
