Despite a reduction in GST rates, the gross monthly collection in December surged by over 6%, reaching Rs 1,74,550 crore compared to Rs 1,64,556 crore in the same period last year. Industry experts view this growth positively, indicating a rise in economic activity for the month. Pratik Jain from Price Waterhouse & Co LLP mentioned that if this momentum persists, a year-on-year growth of approximately 9% could be achievable, aligning with the government’s targets.
In December, Central GST collections climbed to Rs 34,289 crore, state GST collections to Rs 41,368 crore, and integrated GST collections to Rs 98,894 crore. Manoj Mishra, from Grant Thornton Bharat, highlighted that these numbers underscore the robustness of India’s formal economy, positioning the country as the world’s 4th largest economy, surpassing Japan. The composition of collections reflects resilient supply chains and stable consumption, with import-related IGST growing by 19.7%.
Noteworthy is the rise in refunds to Rs 28,980 crore, marking a 30.9% increase year-on-year, emphasizing the focus on business liquidity. Despite a slight 1.9% decline in export refunds due to global trade challenges, Maharashtra, Gujarat, Karnataka, and Haryana continue to drive revenues. The government collected Rs 4,551 crore through the GST compensation cess, a temporary measure until all liabilities are settled, with the full-year collection amounting to Rs 88,385 crore, lower than the previous year’s Rs 1.1 lakh crore.
As the Budget 2026–27 approaches, experts advocate for policy enhancements in GST 2.0 reforms, emphasizing automation of compliances, reduction of litigation, and a balanced credit framework to sustain growth while ensuring revenue stability.
