GST collection rose by over 12% in Jan, second highest collection in FY25

GST collection rose by over 12% in Jan, second highest collection in FY25

Collections from Goods & Services Tax (GST) in January surged over 12 per cent to touch ₹1.95 lakh crore, data on GST portal made public on Saturday showed. This is the second highest collection in the current fiscal after ₹2.10 lakh crore in April. Given this trend, experts expect collections in the whole financial year to exceed revised estimates for the current fiscal.

GST collection in January is related to goods consumed and services availed in the month of December.

Data showed that while growth in collection from domestic sources grew by 10 per cent, that from imported items recorded a rise of around 20 per cent. In 10 months period of the current fiscal, rise in domestic and import was 10 per cent and 7.4 per cent respectively. Data clearly reflect that month of December showed improvement in consumption as GST is levied on the end consumer.

Steady pace

According to MS Mani, Partner with Deloitte India, the steady pace of the GST collections resulting in a 9.4 per cent growth (April-January) in revenues compared with the same period last year will help in exceeding the BE for FY25, if the pace is maintained for the next two months of the current fiscal year. The significant increase of 15 per cent in refunds also indicates that both businesses and tax authorities are now completely familiar with the refund processes and their requirements.

“With significant increases in GST collections ranging from 10 per cent to 20 per cent in case of large States such as Tamil Nadu, Maharashtra, Gujarat, Telangana and UP, it will be a matter of concern for both the State and Central GST authorities that similar large States such as Karnataka, Haryana, Rajasthan, MP, Punjab and West Bengal have shown increases in the range of only 5 per cent to 9 per cent,” he said.

Abhishek Jain, Partner with KPMG in India said that GST collections in January 2025 have shown an impressive growth of 12.5 per cent year on year. This consistent increase could indicate an uptick in economic growth and sustained tax compliance by businesses. Notably, “the growth in collections despite higher refunds is commendable, suggesting improved efficiency in refund processing by the department — an encouraging step toward enhancing ease of doing business,” he said.



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