GST collection sees muted growth in December 2024

Goods and Service Tax collection in India saw its growth rate slow in December 2024, registering 7.3% year on year growth during the month, compared to 8.5% year on year growth in November 2024. 

“The 7.3% growth in GST collections is in line with a bit of a slowdown in GDP [gross domestic product] growth,” said KPMG‘s indirect tax head and partner, ET Bureau. “As it’s expected the GDP growth will inch north in this quarter, the GST collections should mirror the same.”

GST collections for December 2024 totalled approximately Rs 1.77 lakh crore, compared to Rs 1.82 lakh crore in November 2024. Gross GST collection from April to December 2024 increased by 9.1% year on year and domestic collections increased by 8.4% year on year during the same time period. GST refunds notably increased by 45.3% year on year in December. 

A slight slowdown in GST collections is not uncommon following the autumn festive season and consumer spending has been slightly muted over the past few months. Looking ahead, retailers are hoping that the upcoming government budget will be tailored to boost consumption. GST was first introduced in July 2017 and Assam was the first state to pass the GST Bill.