GST collections pick up pace in December rise to Rs 1.74 lakh crore

The uptick, however, was driven largely by imports rather than domestic activity.

GST revenues in December signalled a modest but meaningful revival in momentum, offering some relief after a softer trend in the preceding month.

Gross GST collections for November rose to Rs 1.74 lakh crore, up 6.1 percent year-on-year, compared with Rs 1.70 lakh crore in November. December marked the fastest pace of GST growth in three months, pointing to a gradual improvement in tax buoyancy since the government rationalised rates in September.

The uptick, however, was driven largely by imports rather than domestic activity. After adjusting for refunds, net GST revenue stood at Rs 1.46 lakh crore, reflecting a more subdued 2.2 percent growth.

Official data shows that domestic gross GST collections grew just 1.2 percent, while GST from imports surged nearly 20 percent, underscoring the rising contribution of trade-linked taxes amid stable import demand.

From a state-level perspective, settlement data indicates that major industrial states such as Maharashtra, Gujarat, Karnataka and Tamil Nadu continued to be the largest contributors to the GST pool, reflecting their dominant role in manufacturing, trade and services activity.

Overall, December’s GST performance points to an economy that is still expanding at a reasonable clip, with growth supported by import activity, steady domestic demand and ongoing formalisation.