Analysis of India's GST Revenue Performance in November 2022

Goods and Services Tax (GST) revenue for November 2022 reached an amount of Rs. 1,45,867 crore. This figure represents a decrease from the Rs. 1,51,718 crore recorded in October 2022. Despite this monthly decline, the collection demonstrated an 11% year-on-year growth compared to November 2021, when the revenue stood at Rs. 1,31,526 crore. Notably, monthly GST collections have consistently surpassed the Rs. 1.4 lakh crore threshold for nine consecutive months. The Ministry of Finance publicly shared these statistics via the Press Information Bureau (PIB). Previously, the government announced GST collections for September 2022 at Rs. 1,47,686 crore, a sum notably higher than November's figures.

Composition of GST Revenue in November 2022

The GST collection for November 2022 was composed of Rs. 25,681 crore from Central GST (CGST), Rs. 32,651 crore from State GST (SGST), and Rs. 77,103 crore from Integrated GST (IGST). The IGST amount specifically included Rs. 38,635 crore collected on imported goods. According to the PIB report, cess collections amounted to Rs. 10,433 crore, with Rs. 817 crore originating from imported goods.

The central government settled Rs. 33,997 crore as CGST and Rs. 28,538 crore as SGST in November 2022, utilizing funds from the Integrated GST collection. Furthermore, Rs. 17,000 crore was disbursed to state governments and Union Territories as GST compensation during the same month. Following these regular settlements, the combined revenue for the Centre and states in November 2022 totaled Rs. 59,678 crore for Central GST and Rs. 61,189 crore for State GST.

Detailed Review of November 2022 GST Collections

Despite the occurrence of several major Indian festivals in November 2022, there was a 4% month-on-month decrease in GST collection compared to October. However, the GST revenues for November 2022 demonstrated an 11% increase when compared to the corresponding period in the previous year, with November 2021 collections recorded at Rs. 1,31,526 crore.

During November 2022, GST revenues derived from the import of goods rose by 20%. Similarly, GST revenues from domestic transactions and imported services increased by 8% compared to the previous year's figures for the same month.

The government continues its efforts to combat tax evasion through the implementation of a sequential return filing system and stringent controls on Input Tax Credit (ITC) claims. Businesses are also becoming more diligent in verifying vendors' GST compliance to ensure timely ITC claims. These measures are expected to sustain the growth momentum in GST revenue collections. Additionally, a potential spike in GST revenue is anticipated during the final month of the calendar year, attributed to GSTR-9/9C filings for FY 2021-22, coupled with the holiday season.

State-wise GST Revenue Performance for November 2022

In November 2022, Ladakh recorded the most significant year-on-year increase in GST collection, surging by 273% compared to November 2021. Another territory followed with a 93% rise, while Daman and Diu, Arunachal Pradesh, and Manipur also showed substantial growth.

Consistent with October 2022 trends, Maharashtra led all states in total state-wise GST collection for November 2022, accumulating Rs. 21,611 crore. Karnataka, Gujarat, Tamil Nadu, and Uttar Pradesh also reported high collection figures.

Conversely, some states and territories displayed a decline in GST collections during November 2022, including Goa, Lakshadweep, Punjab, Himachal Pradesh, the Andaman and Nicobar Islands, and Center jurisdiction.

Below is a detailed breakdown of state and union territory GST collections, comparing November 2021 with November 2022 and showing the percentage growth or degrowth.

The Ministry of Finance released the GST Collection data for November 2022 through a press release on the PIB on December 1st, 2022. Additionally, the 48th GST Council meeting, presided over by Union Finance Minister Nirmala Sitharaman, was scheduled for December 17th, 2022.