India's tax revenue from the Goods and Services Tax (GST) demonstrated a healthy increase for the month of December, showcasing continued economic momentum. The gross GST revenue collected in December 2024 stood at a substantial Rs 1.75 lakh crore, according to official data released by the Finance Ministry. This figure represents a significant 6.1% year-on-year growth compared to the collections of Rs 1.65 lakh crore recorded in the same month of the previous year, December 2023.
Breakdown of the December GST Collections
The detailed composition of the Rs 1.75 lakh crore provides insight into the sources of this revenue. A major portion came from Central GST (CGST), which contributed Rs 32,937 crore. The State GST (SGST) component was Rs 41,135 crore. Furthermore, Integrated GST (IGST) accounted for Rs 90,950 crore, which includes Rs 42,550 crore collected on the import of goods. The final component, the compensation cess, added Rs 10,076 crore to the total kitty, with Rs 1,046 crore of this coming from goods imports.
It is important to note that the government also settled Rs 41,085 crore to CGST and Rs 34,794 crore to SGST from the IGST collections. After these regular settlements, the net revenue for the Centre and the States in December 2024 stands at Rs 74,022 crore for CGST and Rs 75,929 crore for SGST, respectively.
Quarterly Performance and Economic Context
The December figures cap off a strong third quarter for the fiscal year 2024-25. The average monthly gross GST collection for the months of October, November, and December 2024 has been an impressive Rs 1.73 lakh crore. This performance marks an 11.2% growth over the average monthly collections of Rs 1.56 lakh crore recorded in the same quarter of the preceding fiscal year.
This consistent growth in GST revenue is a key indicator of robust domestic economic activity and enhanced compliance measures. The rise suggests that business transactions and consumption levels have remained vigorous, contributing to the government's fiscal strength. The Finance Ministry's data underscores the resilience of the Indian economy, with tax collections reflecting broad-based growth across sectors.
Implications and Future Outlook
The steady climb in GST collections provides the central and state governments with greater financial flexibility to fund public expenditure and infrastructure projects. It also indicates the increasing efficiency of the tax administration system and a widening tax base. Analysts view this trend as a positive sign for the government's fiscal health, potentially aiding in meeting its budgetary targets for the year.
Looking ahead, the focus will remain on sustaining this growth trajectory. Factors such as continued economic expansion, effective anti-evasion measures by tax authorities, and stable domestic demand will be crucial in determining the GST revenue performance in the final quarter of the financial year. The December 2024 collection of Rs 1.75 lakh crore sets a confident tone for the closing months of FY25.
