GST Collections Show Resilient Growth

In a surprising turn of events, GST collections in December witnessed a 7.3% increase, totaling Rs 1,76,857 crore. This growth comes amidst a general slowdown in demand across various sectors of the economy and growing concerns over weak urban consumption patterns.

Domestic Collections and Import-Related Figures

Domestic collections, reflecting transactions from the previous month, grew by 8.4% to Rs 1,32,589 crore. Meanwhile, collections related to imports saw a modest 3.9% increase. The government's proactive stance on issuing refunds, which surged by 45% to Rs 22,490 crore, played a significant role in this positive outcome.

State-Wise Performance and Future Outlook

While states like Sikkim, Haryana, and Punjab emerged as top performers with significant growth rates, others such as Arunachal Pradesh and Meghalaya lagged behind. The mixed performance across states has prompted policymakers to delve deeper into the sectoral breakdown of GST collections to identify underlying issues.

As the budget approaches, industry leaders are advocating for measures such as income tax reductions and other incentives to stimulate demand. The recent GST collection figures have also sparked discussions on the need for rate rationalization by the GST Council to further boost economic activity.