India's Goods and Services Tax (GST) collections witnessed a 7.3% year-on-year increase in December 2024, reaching Rs.1.77 lakh crore, according to official data released on Wednesday. This growth demonstrates the steady momentum in India's tax revenue, up from Rs.1.65 lakh crore collected in December 2023.

Revenue Breakdown and Domestic Growth

The GST revenue for December included Rs.32,836 crore from Central GST, Rs.40,499 crore from State GST, Rs.47,783 crore from Integrated GST, and Rs.11,471 crore from cess. Domestic transactions contributed significantly to the growth, with collections rising 8.4% year-on-year to Rs.1.32 lakh crore. Revenue from imports also saw an uptick, registering a 4% growth to Rs.44,268 crore.

Comparison with Previous Months

Despite the strong year-on-year growth, December's GST collections were slightly lower than November 2024, which saw a record Rs.1.82 lakh crore, reflecting an 8.5% increase compared to the previous year. April 2024 still holds the record for the highest-ever GST collection, exceeding Rs.2.10 lakh crore.

Refunds and Adjusted Collections

Refunds issued during December amounted to Rs.22,490 crore, a sharp 31% increase from the same month last year. After adjusting for refunds, the net GST collection for December stood at Rs.1.54 lakh crore, indicating a 3.3% growth.

Indicators of Economic Strength

The consistent rise in GST collections highlights robust domestic economic activity and improved compliance under India's unified tax system. This growth trajectory reflects the effectiveness of reforms and the resilience of the Indian economy.

Notably, April 2024 set a remarkable milestone with the highest-ever GST collection, exceeding Rs.2.10 lakh crore, showcasing robust economic activity and improved compliance measures. Adding to this, December 2024 witnessed a significant issuance of refunds amounting to Rs.22,490 crore, reflecting a substantial 31% increase compared to the previous year. When these refunds are accounted for, the net GST collection for December still registered a solid growth of 3.3%, reaching Rs.1.54 lakh crore. This consistent rise in GST collections underscores the effectiveness of tax reforms and the resilience of the Indian economy.

Despite the dip in refunds, the net GST collections showcased a positive trend. After adjusting for refunds, the net revenue increased by an impressive 11%, reaching Rs.1.63 lakh crore.
This growth reflects steady economic activity and improved compliance among taxpayers, signaling a robust trajectory for India's GST regime. The figures highlight the importance of efficient tax collection and refund processes in maintaining fiscal balance.