GST collections touch ₹1.65-lakh crore in December

Goods and Services Tax (GST) collections in December 2023 came in at ₹1,64,882 crore, reflecting a 10.28 cent increase over collections level of ₹1,49,507 crore in same month last year.

December marks the seventh month so far this fiscal when average GST collections surpassed the ₹1.6-lakh crore level. In November 2023, GST collections stood at ₹1,67,929 crore.

Meanwhile, Gross GST collections during April-December 2023 stood at ₹14.97-lakh crore — up 12 per cent over ₹13.40-lakh crore collected in the same period of the previous year (April-December 2022), official data released on Monday said.
In the first nine months of the current fiscal, Gross GST collections averaged ₹1.66-lakh crore. This represents a 12 per cent jump from the ₹1.49-lakh crore average recorded in the corresponding period of FY23.

In December 2023, out of the gross GST revenue of ₹1,64,882 crore, CGST stood at ₹30,443 crore, while SGST stood at ₹37,935 crore, IGST at ₹84,255 crore (including ₹41,534 crore collected on import of goods) and cess is ₹12,249 crore (including ₹1,079 crore collected on import of goods), official data showed.

The government has settled ₹40,057 crore to CGST and ₹33,652 crore to SGST from IGST. 

The total revenue of Centre and the States in the month of December, after regular settlement, is ₹70,501 crore for CGST and ₹71,587 crore for the SGST.

Domestic revenues

During the month, the revenues from domestic transactions (including import of services) are 13 per cent higher than the revenues from these sources during the same month last year.

Abhishek Jain, Partner & National Head, Indirect Tax-KPMG, said: “While the collection is slightly lower than those seen last month, the consistent mark of above ₹1.6-lakh crore provides large fiscal confidence; this being despite the various global headwinds. Festive cheer and continued settlement of FY 17-18 and 18-19 dues would have contributed well to this continued growth.”

Saurabh Agarwal, Tax Partner, EY, said that increased GST collections over nine months period is an indicator of stable Indian economy, better tax administration and increased consumption. The consistent increase in collection in areas like Ladakh, Arunachal Pradesh, Andaman and Nicobar and Lakshadweep indicate increased economic activity in these areas, he added.

Gunjan Prabhakaran, Partner & Leader, Indirect tax, BDO India, said that the GST collection for the month of December 2023 has shown a minor reduction as against the higher collections attributable to festive season demand in November 2023. On a year-on-year basis, there is an increase of about 10 per cent due to increased economic activity and improved compliance, Prabhakaran added.

Source : The Hindu Business Line