India’s Goods and Services Tax (GST) collection achieved a 7.3% year-on-year (YoY) growth in December 2024, reaching Rs 1.77 lakh crore, according to government data released on January 1, 2025. This steady increase reflects ongoing economic activity and improved tax compliance across country. However, December figure marks a 3% decline compared to Rs 1.82 lakh crore collected in November 2024, attributed to seasonal consumption patterns post-festivities.
Key Highlights of December 2024 GST Collection
| Component | Amount (Rs in Crore) | Notes |
| Central GST (CGST) | 32,836 | Revenue from central government taxation. |
| State GST (SGST) | 40,499 | Revenue collected by individual states. |
| Integrated GST (IGST) | 47,783 | Includes Rs 18,310 crore from imports. |
| Cess | 11,471 | Includes Rs 1,258 crore from imports. |
| Domestic Transactions | 1.32 lakh crore | Grew by 8.4% YoY. |
| Imports | 44,268 | Grew by 4% YoY, reflecting moderate international trade growth. |
Steady Annual Growth Despite Monthly Dip
India’s GST revenue figures for December 2024 reflect a stable trajectory despite 3% month-on-month (MoM) decline compared to November. Economists attribute this to reduced consumer spending post-festive seasons.
- Year-on-Year (YoY) Growth:
December’s GST collection grew by 7.3% YoY, underscoring country’s economic resilience. - Month-on-Month (MoM) Decline:
decline from November’s Rs 1.82 lakh crore to December’s Rs 1.77 lakh crore is seen as a temporary dip due to seasonal factors. - Impact of Refunds:
December saw a 31% increase in refunds, amounting to Rs 22,490 crore, compared to Rs 19,259 crore in December 2023. This significant rise in refunds slightly reduced net GST revenue growth to 3.3% YoY.
GST Collection Trends in 2024
| Month | GST Collection (Rs in Lakh Crore) | YoY Growth | Significant Events |
| April 2024 | 2.10 | 12% | Highest-ever monthly GST collection. |
| October 2024 | 1.87 | 9% | Second-highest collection on record. |
| November 2024 | 1.82 | 8.5% | Boosted by festive season demand. |
| December 2024 | 1.77 | 7.3% | Post-festive dip attributed to seasonal factors. |
Sectoral Contribution
- Domestic Transactions:
Revenues from domestic sales grew by 8.4% YoY, reaching Rs 1.32 lakh crore, highlighting robust internal economic activity. - Imports:
Revenue from imports rose 4% YoY to Rs 44,268 crore, reflecting moderate international trade growth. - Cess Revenue:
collection of Rs 11,471 crore in December includes Rs 1,258 crore from imported goods.
Comparison with 2023
India’s GST collections for entire year of 2024 demonstrated robust growth compared to 2023:
| Year | Annual Transaction Volume (Billion) | Annual Revenue (Rs in Lakh Crore) | Growth |
| 2023 | 118 | 183 | Base year |
| 2024 | 172 | 247 | 46% increase in volume, 35% increase in value. |
Impact of Refunds on Net Revenue
December 2024 GST collection data highlights a sharp 31% increase in refunds, which influenced net revenues:
| Month | Refund Amount (Rs in Crore) | Net GST Collection (Rs in Lakh Crore) | YoY Net Growth |
| December 2023 | 19,259 | 1.49 | Base year |
| December 2024 | 22,490 | 1.54 | 3.3% |
Economic Implications
- Compliance and Digitization:
sustained growth in GST collections indicates improved compliance due to stricter enforcement and digitization of tax filing. - Seasonal Trends:
post-festive consumption slowdown in December mirrors patterns observed in previous years, with expectations for a rebound in March 2025 quarter. - Taxpayer Base Expansion:
With an expanding taxpayer base and better reporting mechanisms, government has succeeded in capturing a larger share of economic transactions under GST.
Future Outlook
Despite marginal dip in December collections, India’s GST system remains a vital indicator of economic health. Experts predict:
- Rebound in Q1 2025:
With seasonal adjustments, GST collections are expected to pick up in first quarter of 2025. - Increased Compliance:
Continued efforts to curb evasion and promote e-invoicing are likely to sustain long-term growth. - Economic Growth Linkage:
As Indian economy grows, GST revenue trajectory will mirror broader economic expansions.
Conclusion
India’s GST Collection Sees 7.3% Growth in December 2024, reflecting a resilient economy and improved compliance mechanisms. While a minor month-on-month dip was observed due to seasonal factors, overall trend remains strong, signaling robust domestic and international trade activity. With a steady trajectory, GST collections are poised to play a pivotal role in supporting India’s fiscal and developmental goals.
Disclaimer
This article is based on official GST collection data and economic reports. analysis provided reflects current trends and projections. Readers are encouraged to consult official government releases for further details and verification.
