"India's goods and services tax(GST) revenues traversed ₹1,64,800 crore in december 2023, with an year-on-year growth descending to a three-month low of 10.3% from a 15.1% hike in the previous month", the data released by the finance ministry accentuated on Monday.
A boost in the consumption and economic activities along with settlement of disputes by businesses, that followed notices issued by GST authorities contributed to the sharp rise in GST revenue, this has now moderated regardless of the early-november marked by the festive season. Reports highlighting that impact of lower imports have contributed to the dwindling GST earnings.
December GST reserve for transactions that were undertaken in November,2023 is 1.8% lower than that 1.68 lakh crore collected a month earlier, the tax, introduced in July 2017, achieved it's third-highest monthly receipts.
Seven states and union territories out of 38 states/UT's comprising of centre's jurisdiction witnessed single-digit growth in GST collections. There was a marked consecutive slowdown in revenue collection in states such as Gujarat, which collected ₹9,874 crore in december, upto 7% from ₹9,238 crore a year ago. Correspondingly, GST collections rose in single digit for Chhattisgarh about 1% at ₹2,613 crore, Punjab about 8% at ₹1,875 crore and Himachal Pradesh at about 5% at ₹745 crore.
"While major states have been persistent in their growth, deeper analysis is required for the lack of growth in GST collections in Rajasthan, Chattisgarh and Jharkhand", MS Mani, partner, Deloitte India stated.
Despite the year-on-year growth of 10.3% in December, the gross goods and services tax(GST) collections marked a 3-month low at Rs.1.64 lakh crore. This slowdown, the slowest in the three months, follows a surge in november attributing to increased consumption and economic activity.
The impact of lower imports may have contributed to the decline, the post-settlement data revealed Rs. 70,501 crore revenue for the centre and Rs. 71,587 crore for state GST in december.
Experts still remain optimistic , citing continued fiscal confidence and settlements contributing to sustained growth.
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