As per the data, one of the factors that contributed to the lower net collection is that the authorities gave Rs 22,490 crore of tax refunds in December, a 45.3 per cent higher than the refunds issued during last year's same period
December recorded the lowest gross Goods and Services Tax (GST) collection of Rs 1.76 lakh crore in three months, according to official data. However, it spiked to 7.3 per cent from the previous year in the same period, slowing from an 8.5 per cent year-on-year increase in November.
This came amid a jump in refunds and a slowdown in consumption. The Central GST collection stood at Rs 32,836 crore, State GST at Rs 40,499 crore, Integrated GST at Rs 47,783 crore and Cess at Rs 11,471 crore, according to government data released on Wednesday. In December last year, GST collection stood at Rs 1.65 lakh crore.
As per the data, one of the factors that contributed to the lower net collection is that the authorities gave Rs 22,490 crore of tax refunds in December, a 45.3 per cent higher than the refunds issued during last year's same period.
During this financial year, GST of Rs 16.33 crore has been collected prior to refunds, registering a 9.1 per cent annual surge. After refunds, GST revenue receipts in the first nine months of the fiscal stood at Rs 14.4 lakh crore, showing an 8.6 per cent annual growth.
Net GST collection (net of refunds) grew at a slower pace of 3.3 per cent to Rs 1.54 lakh crore in December. This is the slowest growth in net monthly GST revenue during the period.
The slowdown in GST collection came amid worries around a moderation in urban consumption demand. According to the Federation of Automobile Dealers Association (Fada), two-wheelers, three-wheelers and tractors posted annual growth of 15.8 per cent, 4.23 per cent, and 29.88 per cent respectively in November. However, there was a year-on-year decline in passenger vehicles and commercial vehicles by 13.72 per cent and 6 per cent respectively. GST collected in December represents the sales executed in November.
"Given the slowdown in GST collections, it will be interesting to see if the government takes specific measures to boost consumption in the upcoming budget," Pratik Jain, partner, PwC India told PTI.
In November, gross revenue increased by 8.5 percent to Rs 1.85 lakh crore. Revenue collection crossed the Rs 1.8 lakh crore mark four times in the nine months until December. In April, it reached a record high of Rs 2.1 lakh crore on the back of strong financial year-end inventory clearing by companies in March. But it moderated later.