December GST Collections Drop to Three-Month Low Amid Sluggish Consumption
The decline coincided with increased tax refunds and weaker consumption trends
Gross Goods and Services Tax ( GST ) collections in December hit a three-month low of ₹1.76 lakh crore, as per official data. Despite this dip, collections were up by 7.3% compared to the same period last year, a slowdown from November's 8.5% year-on-year growth. The breakdown of collections includes ₹32,836 crore from Central GST, ₹40,499 crore from State GST, ₹47,783 crore...
Gross Goods and Services Tax ( GST ) collections in December hit a three-month low of ₹1.76 lakh crore, as per official data. Despite this dip, collections were up by 7.3% compared to the same period last year, a slowdown from November's 8.5% year-on-year growth.
The breakdown of collections includes ₹32,836 crore from Central GST, ₹40,499 crore from State GST, ₹47,783 crore from Integrated GST, and ₹11,471 crore from Cess. In December 2024, the total GST collection stood at ₹1.65 lakh crore.
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Higher refunds significantly impacted net collections, with ₹22,490 crore issued in December—45.3% more than in the same period last year. Consequently, net GST collections (after refunds) grew by only 3.3% to ₹1.54 lakh crore, marking the slowest growth in net monthly GST revenue during this period.
Declining GST Revenues Reflect Sluggish Consumption
The moderation in GST collections highlights concerns over weaker urban consumption demand. Data from the Federation of Automobile Dealers Association ( FADA ) showed mixed performance in November:
- Growth: Two-wheelers (15.8%), three-wheelers (4.23%), and tractors (29.88%).
- Decline: Passenger vehicles (-13.72%) and commercial vehicles (-6%).
Since December’s GST reflects November’s sales, the numbers signal the consumption slowdown.
Revenue Trends in 2024
In November, gross GST revenue rose by 8.5% to ₹1.85 lakh crore, with revenue exceeding ₹1.8 lakh crore four times in the nine months up to December. April saw a record ₹2.1 lakh crore due to robust year-end inventory clearance by companies. However, revenues have moderated since.
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The GST collections in December 2024 amounted to ₹1.76 lakh crore, marking a 7.3% year-on-year growth compared to ₹1.65 lakh crore in December 2023. However, this represents the lowest monthly GST collection in the past three months.
While the year-on-year growth in GST revenue continues, the slower pace compared to previous months signals caution. Policymakers need to focus on addressing consumption challenges and ensuring efficient tax administration to sustain long-term growth.
This analysis is based on official data and trends presented in the uploaded GST report. The report provides a comprehensive view of collections, refunds, and state-wise performance.
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