December GST collections rise 7.3% YoY to Rs 1.77 lakh crore

India's Goods and Services Tax (GST) collections reached Rs 1.77 lakh crore in December 2024, marking a 7.3% increase compared to Rs 1.65 lakh crore in December 2023. This is the tenth consecutive month that GST collections have stayed above the Rs 1.7 lakh crore mark, although the growth rate is slower than previous months.

Despite being lower than the Rs 2.1 lakh crore collection in April, the December figures suggest a steady pace in GST revenue. Experts attribute the slowdown to typical post-holiday season effects, with consumer spending seeing a slight dip in recent months.

Saurabh Agarwal, Tax Partner at EY India, noted, “India’s GST collections have slowed slightly, which aligns with expectations after the holiday season. Consumer spending has shown a slight decrease over the past few months.”

On a positive note, GST collections in the October-December quarter averaged Rs 1.82 lakh crore, slightly higher than the Rs 1.77 lakh crore from the previous quarter. This represents an 8.3% year-on-year increase for the quarter, showing a better economic performance compared to the previous quarter.

While the Indian economy faced a slowdown in the second quarter with growth dipping to a seven-quarter low of 5.4%, experts expect a 6.6% growth for FY25, supported by the recent rise in GST revenue.

The net GST revenue for December stood at Rs 1.54 lakh crore, up 3.3% year-on-year. Notably, the growth in domestic revenue (6.7%) outweighed the decline in customs revenue (-7.3%).

Domestic refunds surged 31% from the previous year, while import refunds rose sharply by 64.5%. These trends are seen as supporting the government’s "Atmanirbhar Bharat" initiative, focusing on boosting domestic production and reducing reliance on imports for long-term economic growth.