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NEW DELHI : Central and state governments collected around 1.5 trillion in Goods and Services Tax (GST) revenue in December, showing an improvement of 15% over what was collected in the same month a year ago, finance ministry said in a statement on Sunday.

GST collections have now remained above 1.4 trillion mark for the tenth straight month, the ministry said, indicating the buoyancy in the indirect tax collection.

GST cess collected remained at 11,005 crores, showing strong performance of items in the 28% slab, that attracts the cess, especially automobiles. 

The total revenue of Centre and the states after regular settlements in the month of December stood at 63,380 crore and 64,451 crore respectively, the ministry said.

During the month, revenues from import of goods was 8% higher from what was collected from imported items in the same time a year ago and revenue from domestic transactions including import of services was 18% higher from what was mopped up in the same time a year ago.

In November 2022, 7.9 crore e-way bills were generated, which was significantly higher than 7.6 crore e-way bills generated in October. Revenue collections in December represent transactions in November. E-way bills are needed for high value shipment of goods within and across states and is taken as a high frequency indicator of economic activity by analysts.

According to MS Mani, Partner, Deloitte India, the 18% increase in GST revenues from domestic transactions viewed with the increase in e-way bill issuance and the significant increase in GST collections by key manufacturer and consuming states would be indicative of a sustained manufacturing and consumption cycle in recent months.

Major state economies showed strong year-on-year GST collection growth in December. Punjab, Delhi, Gujarat, Maharashtra, Karnataka and Tamil Nadu showed double digit growth in December.

“Robust GST collection gives a great start to the new calendar year. Rs. 1.5 trillion seems to be the new normal even after peak festive sales are over," said Abhishek Jain, Partner Indirect Tax at KPMG. Strong GST collections would be good news for both the Centre and states faced with higher spending commitments on account of subsidies, capital expenditure and welfare measures. 

 

ABOUT THE AUTHOR

Gireesh Chandra Prasad

Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
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