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Net GST collection in January rises 11% to ₹1.71 trillion
- The gross collection last month stood at ₹1.95 trillion, the highest since the record ₹2.1 trillion recorded in the same month last fiscal. This upward movement in revenue collection comes after a drop in December, when collections fell to a three-month low.
New Delhi: The Centre and states collected net goods and services tax (GST) of ₹1.71 trillion in January, the highest in nine months.
The collection is 10.9% higher from ₹1.54 trillion in the year-ago period, according to official data. In April FY25, the net collection stood at ₹1.92 trillion.
The gross collection last month stood at ₹1.95 trillion, the highest since the record ₹2.1 trillion registered in April 2024. This upward movement in revenue collection comes after a drop in December, when collections fell to a three-month low.
The net collection during the fiscal (April-January) rose 8.7% to ₹16.16 trillion.
M.S. Mani, partner, Deloitte India, said: "The steady pace of the GST collections resulting in a 9.4% growth in revenues compared with the same period last year will help in exceeding the BE budget estimates) for FY25, if the pace is maintained for the next two months of the current fiscal year. The significant increase of 15% in refunds also indicates that both businesses and tax authorities are now completely familiar with the refund processes and their requirements.
While, the tax refunds during the fiscal rose 15.7% to ₹2.12 trillion, refunds in January rose 23.9% to ₹23,853 crore.
Tamil Nadu and Maharashtra showed strong revenue collection growth in January with collection improving 20% and 14%, respectively. Uttar Pradesh and Gujarat reported a growth of 11% each in GST collection, while Telangana and West Bengal recorded a growth of 10% and 7% respectively.
The states and Union territories which witnessed a decline in revenue collection are Himachal Pradesh (-7%), Mizoram (-10%), Manipur (-1%) and Lakshadweep (-4%).
Abhishek Jain, indirect tax head & partner, KPMG, said: "GST collections in January 2025 have shown an impressive growth of 12.5% year on year. This consistent increase could indicate an uptick in economic growth and sustained tax compliance by businesses. Notably, the growth in collections despite higher refunds is commendable, suggesting improved efficiency in refund processing by the department—an encouraging step toward enhancing ease of doing business."
"With significant increases in GST collections ranging from 10% to 20% in case of large states like Tamil Nadu, Maharashtra, Gujarat Telangana and UP , it will be a matter of concern for both the state and central GST authorities that similar large states like Karnataka, Haryana, Rajasthan, MP, Punjab and West Bengal have shown increases in the range of only 5% to 9%,” Mani added.
The increase in GST collection comes as a positive indication amid concerns about signs of moderation in urban consumption demand. Automobile retail sales in December slid 12% year-on-year, according to retail data released by The Federation of Automobile Dealers Associations (FADA).
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Business NewsEconomyNet GST collection in January rises 11% to ₹1.71 trillion
First Published:1 Feb 2025, 09:43 PM IST
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