Day: December 2, 2024

GST Collections in November 2024: Mop-up Rises by 8.5% to ₹1.82 Lakh Crore

GST Mop-Up Rises 8.5% to ₹1.82 Lakh Crore in November

India’s Goods and Services Tax (GST) revenue surged by 8.5% in November 2024, reaching ₹1.82 lakh crore compared to ₹1.68 lakh crore in the same month last year. This marks a significant milestone in India’s financial landscape, showcasing steady economic recovery and robust domestic consumption.

Key highlights include:

Domestic GST collections rose by 10.3% year-on-year to ₹11.04 lakh crore.
Import GST collections saw a moderate growth of 5.9%.
Total GST refunds during April–November stood at ₹1.66 lakh crore, reflecting a 10.2% increase.
Central GST (CGST) grew by 12.2%, and State GST (SGST) increased by 12.6%.
Experts attribute the growth to increased domestic activity and a resilient economy, though global geopolitical factors and subdued import activity may temper future gains.

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India’s Goods and Services Tax (GST) revenue saw a significant rise in November 2024, with collections increasing by 8.5% year-on-year to reach ₹1.82 lakh crore. This growth marks a substantial improvement compared to the ₹1.68 lakh crore collected in November 2023, according to data released by the Finance Ministry.

Breakdown of Key Highlights

  1. Robust Domestic Activity Boosts Collections
    • GST collections from domestic activity grew by 10.3% year-on-year, totaling ₹11.04 lakh crore.
    • However, the growth from imports was limited to 5.9%, indicating slower momentum in global trade and non-petroleum imports.
  2. Refunds and Net Collections Show Positive Trends
    • Total GST refunds issued during the April-November period amounted to ₹1.66 lakh crore, marking a growth of 10.2% compared to the same period last year.
    • The cumulative GST mop-up for April-November 2024 reached ₹14.6 lakh crore, which is 9.3% higher than the corresponding period in FY24.
  3. Segment-Wise Growth
    • Central GST (CGST): Collections rose by 12.2% year-on-year.
    • State GST (SGST): Witnessed an increase of 12.6%.
    • Integrated GST (IGST): Growth was relatively modest at 5.5%.
  4. Sectoral Indicators and Economic Implications
    • According to tax experts, the domestic GST revenue growth of 10% aligns with rising domestic consumption and supports India’s GDP growth projections for FY25.
    • Economic uncertainties and geopolitical tensions could potentially slow down GST growth in the coming months.

Market Conditions and Outlook

While November’s numbers indicate a healthy recovery, monthly-on-month collections have slightly declined from October’s ₹1.87 lakh crore, primarily due to a reduction in festive-season spending. Experts highlight that while consumption in rural India is stabilizing, urban consumption remains a critical driver of GST revenue growth.

Conclusion

The GST mop-up for November reflects strong domestic economic activity, despite slower import growth. With a year-to-date (YTD) GST growth of 9%, India is on track for robust fiscal performance, although certain macroeconomic factors could influence future collections.