GST collections rose 7.3% to Rs 1.77 lakh crore in Dec 2024

New Delhi, Jan 1: India’s goods and services tax (GST) collections rose 7.3 per cent to Rs 1.77 lakh crore in December compared to Rs 1.65 lakh crore in the same month a year ago, according to the government data released on Wednesday.

The Central GST collection stood at Rs 32,836 crore, State GST at Rs 40,499 crore, Integrated GST at Rs 47,783 crore and cess at Rs 11,471 crore.

The GST from domestic transactions during the month grew 8.4 per cent to Rs 1.32 lakh crore, while revenues from tax on imports rose about 4 per cent to Rs 44,268 crore.

In November, GST mop-up was Rs 1.82 lakh crore with 8.5 per cent annual growth. The highest-ever collection was in April 2024 at over Rs 2.10 lakh crore.

During the month, refunds worth Rs 22,490 crore were issued, registering 31 per cent increase over the year-ago period. After adjusting refunds, net GST collection increased by 3.3 per cent to Rs 1.54 lakh crore.

The country’s GST collections have remained buoyant during the current financial year, helping the government to mobilise more resources and keep the fiscal deficit in check.

India’s fiscal deficit for the first eight months from April to November of the current financial year is estimated at Rs 8.47 lakh crore, which works out to 52.5 per cent of the estimate for the financial year, according to official data released on Tuesday.

This reflects a strong macroeconomic financial position as the fiscal deficit is well under control with the government sticking to the consolidation path.

The government aims to bring down the fiscal deficit to 4.9 per cent of gross domestic product (GDP) in the current financial year from 5.6 per cent in 2023-24.

The buoyancy in tax collections places more funds in the government’s coffers to undertake investments in large infrastructure projects to spur economic growth and take up welfare schemes for the poor.

It also helps to keep the fiscal deficit in check and strengthens the macroeconomic fundamentals of the economy.

A lower fiscal deficit means the government has to borrow less, which leaves more money in the banking system for big companies to borrow and invest. This in turn leads to a higher economic growth rate and the creation of more jobs.

Besides, a low fiscal deficit keeps the inflation rate in check, which strengthens the fundamentals of the economy and ensures growth and stability.