India's Goods and Services Tax (GST) revenue for the month of November showed a modest increase, reflecting a significant slowdown in the pace of growth compared to recent months. The gross GST collection for November 2024 stood at Rs 1.70 lakh crore, according to official data released by the Finance Ministry on Sunday, December 1.
A Detailed Look at the November GST Figures
The November collection of Rs 1,70,069 crore marks a year-on-year growth of just 0.7%. This is a notable deceleration from the double-digit growth rates witnessed in the preceding months. The revenue from domestic transactions, which is often seen as a key indicator of internal economic activity, actually saw a slight decline of 0.2%. However, this dip was offset by a 13.2% increase in revenue from the import of services.
Breaking down the components of the total collection, the Central Goods and Services Tax (CGST) contributed Rs 32,794 crore. The State Goods and Services Tax (SGST) stood at Rs 41,031 crore. The Integrated Goods and Services Tax (IGST), which includes taxes on inter-state transactions and imports, was Rs 86,337 crore. This IGST figure includes Rs 39,035 crore collected on the import of goods. Additionally, the cess component, levied on specific goods like luxury and sin items, amounted to Rs 9,907 crore, which includes Rs 1,076 crore collected on goods imports.
Settlements and Net Revenue for the Centre and States
The central government's financial position after the settlement of taxes between the Centre and states provides a clearer picture of actual revenue. In November, the Centre settled Rs 39,821 crore to CGST and Rs 33,826 crore to SGST from the IGST collected. After factoring in these regular settlements, the total revenue for the Centre and the states in November 2024 was Rs 72,615 crore for CGST and Rs 74,857 crore for SGST, respectively.
It is crucial to note that the GST revenue figures for a given month primarily reflect transactions and economic activity from the previous month. Therefore, the Rs 1.70 lakh crore collected in November 2024 is largely the outcome of business operations and consumption that took place in October 2024.
Context and Implications of the Slower Growth
The marginal 0.7% growth in November GST collections presents a contrasting narrative to the robust performance seen earlier in the financial year. This slowdown could be attributed to several potential factors, including a possible moderation in consumption demand, seasonal variations in economic activity, or the base effect from higher collections in the same period last year.
The data reveals a nuanced story: while domestic transaction revenue showed a marginal contraction, the import of services segment exhibited strong growth. This mixed trend suggests that certain sectors of the economy may be experiencing different momentum levels. Analysts and policymakers will be closely monitoring the coming months' data to determine if this is a temporary blip or the beginning of a more sustained trend of moderated growth in indirect tax collections.
The government has consistently emphasized the stability and efficiency of the GST system, highlighting record collections in recent times. The November figures, while showing growth, underscore the importance of vigilance regarding economic indicators and their reflection in tax revenues. The performance of GST collections remains a critical barometer for assessing the health and direction of India's formal economy.
