In November 2024, India’s Gross Goods and Services Tax (GST) collections rose by 8.5%, totaling Rs. 1.82 lakh crore (US$ 21.74 billion). This marked a solid increase compared to the previous year’s November 2023, which had seen Rs. 1.68 lakh crore (US$ 21.05 billion) in collections. The growth was primarily driven by higher revenues from domestic transactions, signaling robust economic activity and improved taxpayer compliance.

GST Collection Breakdown

The GST collection for November 2024 was broken down as follows:

• Central GST: Rs. 34,141 crore (US$ 4.08 billion)
• State GST: Rs. 43,047 crore (US$ 5.15 billion)
• Integrated GST: Rs. 91,828 crore (US$ 10.97 billion)
• Cess: Rs. 13,253 crore (US$ 1.58 billion)

In comparison, October 2024 saw the second-highest GST collection ever recorded at Rs. 1.87 lakh crore (US$ 22.34 billion), with a 9% annual growth. The highest GST collection was recorded in April 2024, surpassing Rs. 2.10 lakh crore (US$ 25.09 billion).

Domestic Transaction Growth

One of the significant drivers of this growth was a 9.4% increase in domestic transaction revenues, which amounted to Rs. 1.40 lakh crore (US$ 16.73 billion). This suggests continued consumer demand and a vibrant domestic economy. Additionally, import tax revenues grew by 6%, totaling Rs. 42,591 crore (US$ 5.09 billion), highlighting a steady recovery in external trade.

Refunds and Net GST Collection

Refunds for the month totaled Rs. 19,259 crore (US$ 2.30 billion), which was 8.9% lower than the previous year. After accounting for these refunds, the net GST collections stood at Rs. 1.63 lakh crore (US$ 19.47 billion), reflecting an 11% increase from last year.

This steady growth in GST revenues is a positive sign for the Indian economy, indicating not only improved economic performance but also enhanced tax compliance among businesses and individuals.

Conclusion

The consistent rise in GST collections over the past months, including the 8.5% growth in November 2024, paints a picture of a strengthening economy. The uptick in domestic transaction revenues and the rise in net GST collections are positive signals for India’s fiscal health. As the economy continues to recover and compliance improves, these trends are expected to further support the country’s financial stability in the near future.