India’s Goods and Services Tax (GST) collections remained robust in January, reflecting steady economic activity and strong import performance. According to official data released on Sunday, gross GST collections stood at ₹1,93,384 crore in January, marking a 6.2 per cent increase compared to the same month last year.
On a cumulative basis, gross GST revenue collected between April and January reached ₹18.43 lakh crore, registering a healthy 8.3 per cent year-on-year growth. The data indicates sustained momentum in tax collections despite global economic uncertainties.
After accounting for refunds, net GST revenue for January came in at ₹1,70,719 crore, up 7.6 per cent year-on-year. Net collections for the April–January period rose to ₹15.95 lakh crore, reflecting an annual growth of 6.8 per cent.
Domestic and Import Collections
Domestic GST collections increased 4.8 per cent year-on-year to ₹1,41,132 crore, pointing to stable consumption and business activity within the country. Import-related GST revenues remained strong, with gross import collections rising 10.1 per cent to ₹52,253 crore, supported by higher imports and customs-linked taxation.
Compensation Cess and Refunds
Revenue from the GST compensation cess declined sharply to ₹5,768 crore, compared to ₹13,009 crore in January last year, as the transitional levy continues to taper off. Total GST refunds issued during the month stood at ₹22,665 crore, slightly lower by 3.1 per cent on a year-on-year basis.
Post-settlement GST revenues across states showed a mixed trend, reflecting variations in regional economic activity.
December Performance and Sectoral Trends
In December, GST collections had grown 6.1 per cent year-on-year to ₹1,74,550 crore, indicating consistent tax inflows toward the end of the calendar year. During the month, Central GST collections stood at ₹34,289 crore, State GST at ₹41,368 crore, and Integrated GST at ₹98,894 crore, underscoring the role of inter-state trade and imports.
New Tobacco Tax Regime
Meanwhile, the Finance Ministry has issued a series of notifications bringing the new tax regime for tobacco products into effect from February 1. The ministry also released a set of frequently asked questions clarifying that, under the GST framework, excise duty on cigarettes has effectively been reduced to a nominal amount, described as a “fraction of a paisa” per cigarette stick.
The ministry further clarified that the GST compensation cess on tobacco products has not been increased since its introduction in July 2017, addressing concerns over potential tax hikes.
Outlook
Economists say the steady rise in GST collections reflects resilient domestic demand and improved compliance, while strong import-related revenues continue to support overall tax inflows. With the Union Budget setting the policy tone for the coming year, sustained GST performance is expected to remain a key indicator of economic health.