Net goods and services tax (GST) of ₹1.71 trillion in January has been collected by the Centre and states, the highest in nine months.
As per the official data, the collection is 10.9% higher from ₹1.54 trillion in the year-ago period. In April FY25, the net collection stood at ₹1.92 trillion.
Last month the gross collection stood at Rs 1.95 trillion, the highest since the record Rs 2.1 trillion registered in April 2024. This upward movement in revenue collection arrives after a drop in December when collections dropped to a three-month low.
During the fiscal (April-January) the net collection increased 8.7% to ₹16.16 trillion.
The constant pace of the GST collection is directed in a 9.4% rise in the revenues compared with the same duration last year will assist in surpassing the estimates of the budget for FY25, if the pace is carried for the subsequent two months of the existing financial year. A rise of 15% in the refunds shows that both the businesses and tax councils are known with the process of GST refund and their pre-requisite.
The tax refunds during the fiscal increased 15.7% to ₹2.12 trillion, and refunds in January climbed 23.9% to ₹23,853 crore.
A robust rise in the revenue collection growth in January is been shown by the states of Tamil Nadu and Maharashtra with collections improving by 20% and 14% respectively. A growth of 11% each in GST collection, has been reported by Uttar Pradesh and Gujarat, while Telangana and West Bengal recorded a growth of 10% and 7% respectively.
The states and Union territories which saw a drop in revenue collection are Himachal Pradesh (-7%), Mizoram (-10%), Manipur (-1%) and Lakshadweep (-4%).
An exceptional growth of 12.5% year on year has been shown by the GST collections in January 2025. The same successive rise can show an increase in the economic rise and sustained tax compliance via businesses. The rise in the collections even after higher refunds is respected, recommending the rise in the efficiency in the process of refund via the department, motivating steps for improving the ease of business operations.
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A GST collection rise ranging from 10% to 20% in the case of a large state like Tamil Nadu, Maharashtra, Gujarat Telangana, and UP shall be a case of concern for both the state and central GST authorities that similar large states like Karnataka, Haryana, Rajasthan, MP, Punjab, and West Bengal have established growths in the range of solely 5% to 9%.
A surge in the GST collections arrives as a positive sign of the concerns for the signs of moderation in urban consumption demand. As per the retail data specified via the Federation of Automobile Dealers Associations (FADA) Automobile retail sales in December slipped 12% year-on-year.
