India’s GST Revenue Rises Compared to 2022, Dips from Recent Months

India’s Goods and Services Tax (GST) collection has been a topic of conversation, showcasing both growth and a recent decline. In December 2023, the GST revenue reached a three-month low, amounting to Rs 1.65 lakh crore, marking a 10.28 percent rise from the previous year. However, this figure is notably lower than the collections of Rs 1.68 lakh crore in November and Rs 1.72 lakh crore in October.

1. Domestic Transaction Revenues: The finance ministry emphasized that revenues from domestic transactions, including the import of services, were 13% higher than those from the same month in the previous year. This highlights a positive trend in domestic economic activity.
2. Breakdown of Revenue: The total December GST revenue comprises CGST of Rs 30,443 crore, SGST of Rs 37,935 crore, and IGST of Rs 84,255 crore, including Rs 41,534 crore from the import of goods. Additionally, cess amounted to Rs 12,249 crore, including Rs 1,079 crore from imported goods.
3. Fiscal Year Performance: This is the seventh time the gross GST collection has surpassed the Rs 1.60 lakh crore mark in FY 2023–24. The gross GST collection for the fiscal year ending December 2023 amounted to Rs 14.97 lakh crore, marking a 12% increase from the previous fiscal year’s collection for the same period.
4. Average Monthly Collection: The average monthly gross GST collection of ₹1.66 lakh crore over the initial nine-month period of this year depicts a 12% surge compared to the previous fiscal year’s corresponding period.
5. Revenue Settlement: The Centre settled Rs 40,057 crore to CGST and Rs 33,652 crore to SGST from IGST. After regular settlement, the total revenue of the Centre and the States in December 2023 amounted to ₹70,501 crore for CGST and ₹71,587 crore for SGST.

The fluctuation in India’s GST revenue in December 2023 showcases both growth and a recent decline, reflecting the influence of various economic factors. As the fiscal year progresses, it will be interesting to observe how these numbers evolve and what they indicate for India’s economic landscape.www.efiletax.in