December 2024 GST Collections: A Year-on-Year Growth of 7.3%

Introduction

India’s Goods and Services Tax (GST) collections for December 2024 showcased a steady year-on-year growth of 7.3%, reaching a gross revenue of ₹1.77 lakh crore. While this reflects the resilience of the Indian economy, it also highlights a slight dip from the previous month’s revenue of ₹1.82 lakh crore.

Breakdown of December 2024 GST Revenue

• Central GST (CGST): ₹32,836 crore
• State GST (SGST): ₹40,499 crore
• Integrated GST (IGST): ₹47,783 crore
• Cess: ₹11,471 crore

Comparison with November 2024

In November 2024, the gross GST revenue stood at ₹1.82 lakh crore, with an annual growth rate of 8.5%. December’s revenue indicates a minor decline of approximately 2.7% compared to the previous month, driven primarily by seasonal fluctuations and reduced economic activity during the holiday season.

Domestic Transactions vs. Imports

The revenue from domestic transactions in December 2024 grew by a robust 8.4% year-on-year, totaling ₹1.32 lakh crore. This reflects strong domestic consumption and business activity. However, revenue from imports increased by only 4%, amounting to ₹44,268 crore, signaling a relatively slower growth in international trade.

Refunds and Net Collections

During December 2024, refunds worth ₹22,490 crore were issued, marking a 31% increase over the same period last year. After accounting for refunds, the net GST collection stood at ₹1.54 lakh crore, showing a moderate 3.3% growth year-on-year.

Trends and Insights

1. Steady Growth: The 7.3% year-on-year growth highlights consistent performance in GST revenue, supported by strong compliance and a broadening tax base.
2. Peak in April 2024: The highest-ever GST collection was recorded in April 2024 at over ₹2.10 lakh crore, underscoring the potential for further growth in tax revenues.
3. Seasonal Variations: The slight decline from November 2024 to December 2024 can be attributed to typical year-end slowdowns in economic activity.

Conclusion

The GST collections for December 2024 underline India’s steady economic growth and strong domestic demand. While there was a minor dip compared to November, the year-on-year growth trajectory remains positive, supported by effective tax administration and compliance measures.

As we enter 2025, continued efforts to enhance compliance and streamline GST processes are expected to drive further growth, making GST a cornerstone of India’s fiscal health.

Stay tuned for more updates on India’s economic performance and GST trends