Festive Fizzles: December GST Growth Slows, Still Tops Rs 1.65 Trillion

December GST Growth Slows. In December, the expansion of the government’s Goods and Services Tax (GST) collections experienced a slight deceleration, despite the majority of the revenue being attributed to transactions conducted in November, a month marked by various festivals including Diwali. According to data released by the finance ministry on Monday, the gross GST mop-up for December reached Rs 1.65 trillion, reflecting a 10.3% increase compared to the previous year. However, this annual growth rate was lower than the 15.2% reported in November and the average of 11.7% recorded thus far in the fiscal year 2024.

GST Growth Slows in December
GST Growth Slows in December

November witnessed the generation of 87.6 million e-way bills, the lowest in five months. In December, which marked the seventh month of the current fiscal year, gross GST collections exceeded the Rs 1.6 trillion threshold.

Considering the December mop-up, the GST growth or collections for the initial nine months of FY24 averaged Rs 1.66 trillion per month, indicating a 12% rise compared to the corresponding period last year.

The December collections included Rs 33,652 crore for Central GST (CGST), Rs 37,935 crore for State GST (SGST), Rs 84,255 crore for Integrated GST (IGST), and Rs 12,249 crore from cess.

While the Budget projected a 12.9% YoY increase in CGST collections, the actual GST growth from April to December was 16.4%, suggesting a potential significant surpassing of the budget estimate.

In December, the government allocated Rs 40,057 crore to CGST and Rs 33,652 crore to SGST from IGST collections. After this settlement, CGST mop-up reached Rs 70,501 crore, and SGST stood at Rs 71,587 crore.

Gst Growth Slows : What experts say

Saurabh Agarwal, Tax Partner at EY, commented on the GST growth, “Increased GST collections over a 9-month period is an indicator of a stable Indian economy, better tax administration, and increased consumption.” Pratik Jain, Partner at Price Waterhouse & Co LLP, anticipates even higher collections in January, partly due to an upswing in GST audits and notices issued in recent months to meet statutory timelines.

GST Growth Slows in December

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What is the GST collection in 2023?

The cumulative GST collection for the fiscal year 2023-24 until November 2023 amounted to ₹13,32,440 crore, averaging ₹1.66 lakh crore per month. This figure represents an 11.9% increase compared to the gross GST growth or collection for the fiscal year 2022-23 until November 2022, which stood at ₹11,90,920 crore, with an average monthly collection of ₹1.49 lakh crore.

How much GST has been collected?

In June, India’s gross GST revenue collection reached Rs 1,61,497 crore, marking a 12% year-on-year increase, as reported by the Ministry of Finance on Saturday. Notably, April 2023 witnessed a historic high in GST collection at Rs 1.87 lakh crore, while May’s indirect taxes amounted to Rs 1,57,090 crore.

What is the data collection of GST?

What is the data collection of GST?
The data collection of GST, as per the Press Information Bureau, reveals the average monthly gross GST collection for the first quarter (Q1) of FY2021-22 is ₹1.10 lakh crore. For FY2022-23, the average monthly collection increases to ₹1.51 lakh crore, and for FY2023-24, it further rises to ₹1.69 lakh crore. The data also includes a collection of ₹80,292 crore (including ₹39,035 crore from the import of goods), and the cess stands at ₹11,900 crore (including ₹1,028 crore from the import of goods).

What is tax collection under GST?

Tax Collection at Source (TCS) under GST involves an e-commerce operator collecting tax on behalf of the goods or services supplier using their online platform. The operator levies TCS as a percentage on net taxable supplies, ensuring tax collection at the source and enhancing compliance and revenue within the GST system for e-commerce transactions.

Which state has highest GST collection in India 2023?

Maharashtra continues to lead in GST collection among Indian states where GST growth is high. The state recorded the highest GST collections, amounting to Rs. 25,137 crore for the mentioned month. Following Maharashtra on the list are states like Karnataka, Tamil Nadu, Gujarat, Haryana, Uttar Pradesh, and Telangana in terms of GST revenue collection.

What is the highest GST collection month in India 2023?

The highest GST collection month in India for the year 2023 is April, with a record-breaking collection of ₹1.72 lakh crore. The GST revenue collection for October 2023, although the second-highest ever, is surpassed only by the collection in April 2023. In October 2023, the GST revenue reached ₹1.72 lakh crore, reflecting a notable year-on-year increase of 13%.

Who pays GST finally?

In GST or Value Added Tax (VAT) system, the ultimate responsibility for payment lies with the end consumer, the buyer. Although businesses and intermediaries collect and remit the tax, the final burden is transferred to the consumer through pricing. As a consumption-based tax, individuals feel the impact during purchases.

Who has the highest GST?

Among the countries that have a Value Added Tax (VAT) or Goods and Services Tax (GST), Hungary has the highest tax rate at 27 percent. In contrast, Canada has the lowest tax rate at 5 percent. It’s worth noting that Australia’s GST rate is the fourth lowest among the 32 OECD countries with a VAT or GST, being approximately half of the unweighted OECD average rate of 19.2 percent.

Is GST successful in India?

The Goods and Services Tax (GST) has significantly benefited the Indian economy, boosting revenue, ensuring a uniform tax system, eliminating tax cascading, reducing compliance burden, adopting online taxation, removing check posts, and enhancing logistics efficiency. Yet, these positive changes signal just the start, with more anticipated benefits as the GST system evolves in India.

How many types of GST are there?

There are four types of GST in India:
Integrated Goods and Services Tax (IGST), State Goods and Services Tax (SGST), Central Goods and Services Tax (CGST), Union Territory Goods and Services Tax (UTGST). Each type of GST has its own specific role and applies to different aspects of the transaction process. The taxation rates under these categories can vary.

Who collects GST UPSC?

Central GST (CGST) is collected by the central government on an intra-state sale. State GST (SGST) is collected by the state government on an intra-state sale. Integrated GST (IGST) is levied and administered by the Centre on every inter-state supply of goods and services.

What is TDS in GST?

TDS in GST stands for Tax Deducted at Source. According to section 51 of the GST Act, this provision applies to the Government, Government undertakings, and other notified entities when making contractual payments. TDS is deducted when the total value of the supply under the contract exceeds a specified amount.

How many people pay GST in India?

There were over 14 million registered GST taxpayers as of Feb 2023.

How do you calculate GST collection?

GST Amount = (Original Cost*GST Rate Percentage) / 100. Net Price = Original Cost + GST Amount.

Which state has first GST?

First state of India to pass GST Bill is Assam.

Which month has highest GST in India?

In October, GST collections surged by 13% year-on-year, reaching Rs 1.72 lakh crore, as per data released by the Ministry of Finance. This marks the second-highest collection ever recorded, following April 2023, when collections stood at Rs 1.87 lakh crore. The robust growth in October underlines the continuing strength of GST revenue, reflecting positive economic trends.

Which year GST collection is highest?

April 2023. The highest-ever revenue from Goods and Services Tax (GST) was recorded in April 2023 at ₹1.87 lakh crore. This marks the peak GST collection for a single month. The average gross monthly GST collection in the FY 2023-24 is now reported to stand at ₹1.66 lakh crore, reflecting an 11% increase compared to the corresponding period in the previous year.

Which year is GST day in India?

The Goods and Services Tax (GST) was launched in India on 1st July 2017. This marked the implementation of GST, replacing the previous indirect tax system, and it was inaugurated at midnight on that date by the President of India and the Government of India. July 1st is considered as GST Day in India.

How many GST returns are there in a year?

In the GST system, standard businesses with an annual aggregate turnover exceeding Rs. 5 crore, or those not choosing the QRMP scheme, must submit two monthly returns and one annual return. This results in a total of 25 returns per year.

Which date GST became effective?

Implemented on July 1, 2017, GST laws simplified the intricate system of Central and State taxes in India. The Indian GST classifies goods and services into various tax slabs, comprising 5%, 12%, 18%, and 28%, streamlining the taxation structure.

Who invented GST?

The constitutional genesis of GST in India traces back to the year 2000 when the concept was initially proposed by the Atal Bihari Vajpayee Government. In response, state finance ministers established an Empowered Committee (EC) to formulate a GST structure, drawing upon their expertise in developing State VAT.

How is GST paid?

Regular taxpayers are required to make monthly tax payments by the 20th of the following month. Cash payments are initially deposited into the Cash Ledger, and during the filing of monthly returns, the taxpayer debits the ledger, referencing the corresponding debit entry number in the return.

Which country has no GST?

Countries and territories that utilize a sales tax system, rather than a VAT/GST system, include Malaysia, the United States, and Puerto Rico. In Malaysia, it is referred to as Sales Tax and Service Tax, in Puerto Rico as the Sales and Use Tax (SUT), and in the United States simply as Sales Tax.

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