India’s GST revenues reflect strong economic resilience, crossing ₹16.33 lakh crore for FY25 so far, with buoyant domestic consumption and imports driving growth.
New Delhi, January 1: India’s Goods and Services Tax (GST) collections for December 2024 reached an impressive ₹1.76 lakh crore, marking a 7.3% year-on-year growth compared to ₹1.64 lakh crore collected in December 2023, according to data released by the Finance Ministry on Wednesday.
Steady Growth in GST Revenue
The growth was observed across all major GST categories, including CGST, SGST, IGST, and Cess, highlighting the steady momentum in India’s economic recovery.
For the financial year 2024-25, total GST collections have surged to ₹16.33 lakh crore, reflecting a 9.1% increase compared to ₹14.97 lakh crore collected during the same period in the previous fiscal year.
In April 2024, GST collections had touched a record high of ₹2.10 lakh crore, setting the tone for a robust fiscal year.
During FY 2023-24, India’s gross GST collections stood at ₹20.18 lakh crore, marking an 11.7% increase over the previous financial year.
Economic Indicators Remain Strong
The consistent rise in GST revenue underscores strong domestic consumption and increased import activity, reflecting India’s economic resilience amidst global uncertainties. This upward trend bodes well for fiscal stability and economic growth.
GST Framework and Benefits
Introduced on July 1, 2017, GST aimed to simplify the indirect tax regime and enhance revenue efficiency. Over the years, GST rates on essential commodities, including hair oil, toothpaste, soap, wheat, rice, curd, and electronic appliances like TVs, refrigerators, and mobile phones, have been significantly reduced or even exempted in some cases.
GST Council’s Role in Policy Decisions
The GST Council, chaired by the Union Finance Minister and comprising State Finance Ministers, plays a crucial role in policy decisions.
The latest GST Council meeting, held on December 21, 2024, in Jaisalmer, Rajasthan, discussed measures to streamline the tax system further and address compliance challenges.
With a consistent increase in revenue and strategic tax policies, GST continues to serve as a cornerstone of India’s fiscal framework, contributing to economic resilience and growth.
