India's Goods and Services Tax (GST) collections for January 2025 showed a notable 12.3% year-on-year increase, reaching Rs 1.96 lakh crore.
This rise is attributed to heightened economic activity during the month, as evidenced by the breakdown of revenue: Rs 1.47 lakh crore from the sale of goods and services domestically, and Rs 48,382 crore from imported goods.
This marks a significant boost compared to the previous month (December 2024), where collections were up by 7.3% to Rs 1.77 lakh crore.
While January's growth is solid, it is lower than the 8.5% increase observed in November, which was influenced by the festive season. The breakdown for January also showed that Central GST collections stood at Rs 36,100 crore, while state GST revenue was Rs 44,900 crore. The integrated GST collections remained at Rs 1.01 lakh crore, and GST cess collections amounted to Rs 13,400 crore.
The government has set an ambitious GST revenue target for FY'25, estimating an 11% increase to Rs 11.78 lakh crore, including both Central GST and compensation cess.
In the context of the broader fiscal outlook, the government's projected gross tax revenue for FY'25 is Rs 38.40 lakh crore, which represents an 11.72% increase over FY'24.
The breakdown includes Rs 22.07 lakh crore from direct taxes (personal income and corporate tax) and Rs 16.33 lakh crore from indirect taxes (including GST and customs duties).
The government's market borrowing target for the year was set at Rs 11.54 lakh crore, with additional funds expected to come from small savings schemes. Additionally, the gross borrowing target for FY'26 was revised upward by 5.7% to Rs 14.82 lakh crore, reflecting the ongoing fiscal strategy.
Read also| Govt to Simplify TDS Process to Ease Compliance, Says Sitharaman
Read also| Make in India Boost: National Manufacturing Mission Set to Launch