According to official figures, the income decreased slightly in sequential terms from the November collection, which was the third-highest ever, by 1.8%.Due to improved compliance and a steady performance of the Indian economy, New Delhi Goods and Services Tax (GST) revenues reached about ₹1.65 lakh crore in December, a 10.3% year-over-year gain and the sixth highest since the new tax system was implemented in July 2017.
According to official figures, the income decreased slightly in sequential terms from the November collection, which was the third-highest ever, by 1.8%. Due to strong domestic demand and a thriving economy, gross income in December 2023, which represents business transactions in November, crossed the ₹1.60 lakh crores threshold for the seventh time in 2023–24 and the ninth time since 2017.
According to experts, the robust GST collection is a barometer of overall economic health and shows how resilient the Indian economy is against headwinds from across the world. In the second quarter of 2023–24, India’s GDP increased by 7.6%, while in the first half of the fiscal year, it increased by 7.7%. In its December Monetary Policy Committee meeting, the Reserve Bank of India (RBI) raised its GDP growth projection for FY24 from 6.5% estimated in October to 7%.
Even though this month’s collection is a little less than the previous month’s, the constant figure of over 1.6 lakh crores gives fiscal confidence amid several global challenges. Abhishek Jain, national head of indirect tax at KPMG, said.
According to figures issued by the Union finance ministry on Monday, gross GST collections in the first nine months of the current financial year (April–December 2023) reached ₹14.97 lakh crores, compared to ₹13.40 lakh crores collected in the same period of the previous year, a 12% year-over-year gain. According to Saurabh Agarwal, a tax partner at consulting company EY, “increased GST collections over a 9-month period is an indicator of stable Indian economy, better tax administration, and increased consumption.”
The finance ministry made the following statement in response to the December collections: “Notably, this marks the seventh month so far this year with collections exceeding Rs1.60 lakh crores.” According to experts, the current standard for monthly collection is ₹1.60 lakh crores. “In comparison to the ₹1.49 lakh crores average recorded in the corresponding period of FY23, the average monthly gross GST collection of ₹1.66 lakh crores in the first nine months of this year represents a 12% increase,” the ministry stated in a statement.
The central GST (CGST) component was ₹30,443 crores, the state GST (SGST) component was ₹37,935 crores, and the integrated GST (IGST) component was ₹84,255 crores (including ₹41,534 crores collected on import of goods) of the ₹1, 64,882 crores overall GST income in December. In the month of April, ₹12,249 crores was collected in cess. With effect from March 31, 2026, the GST regime imposes a compensatory cess on sinful and luxury commodities such as coal, cars, aerated water, cigarettes, and other tobacco products.
While total collections increased dramatically, certain important states’ monthly revenue growth decreased. For example, Rajasthan and Chhattisgarh only had 1% year-over-year growth in GST income in December, coming in at ₹3,828 crores and ₹2,613 crores, respectively. Similarly, Jharkhand’s annualized increase during that time was merely 4%, coming in at ₹2,362 crore. Strong double-digit increase was seen in December by the following large states: Tamil Nadu (19%, ₹9,888 crores), Uttar Pradesh (12%, ₹8,011 crore), Haryana (22%, ₹8,130 crores), Maharashtra (14%, ₹26,814 crores), and Karnataka (17%, ₹11,759 crore). According to MS Mani, a partner at Deloitte India, “although major states have continued their growth, deeper analysis is required for the lack of growth in GST collections in Rajasthan, Chhattisgarh, and Jharkhand.”
Mani stated, “It is anticipated that the interim budget and vote on account, which is scheduled for February 1, would set greater objectives for FY25 and set the tone for the next phase of GST changes, given the ongoing excellent growth surpassing the fiscal expectations for FY24.
The government paid ₹40,057 crores to the CGST and ₹33,652 crores to the SGST from the IGST based on income from December. According to a statement from the finance ministry, the combined income collected by the central government and the states in December 2023 following normal settlement is ₹70,501 crores for CGST and ₹71,587 crores for SGST.
