India’s Goods and Services Tax (GST) revenues showed signs of a gradual recovery in December, providing relief after a softer performance in the previous month. Gross GST collections stood at ₹1.74 lakh crore, registering a 6.1% year-on-year increase, compared with around ₹1.70 lakh crore collected in the preceding month.
December marked the fastest growth in GST revenues in three months, indicating improving tax buoyancy following the government’s rate rationalisation measures announced in September.
However, the recovery was driven more by imports than domestic consumption. After accounting for refunds, net GST revenue came in at ₹1.46 lakh crore, reflecting a modest growth of about 2.2%.
Imports drive GST growth
Official data shows that domestic GST collections grew only 1.2%, highlighting continued moderation in internal demand. In contrast, GST revenues from imports surged nearly 20%, underscoring the growing contribution of trade-linked taxes amid stable import activity.
State-wise trends
Settlement data indicates that Maharashtra, Gujarat, Karnataka and Tamil Nadu remained the largest contributors to the GST pool, reflecting their strong base in manufacturing, services and trade.
Economic signals
Overall, December’s GST numbers suggest that the economy continues to expand at a measured but steady pace, supported by import demand, resilient consumption patterns and ongoing formalisation of economic activity, even as domestic tax growth remains subdued.
