May GST collections in India surge 16.4% to ₹2.01 lakh crore
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Despite a decrease from April's peak, the GST collections in May highlight robust economic activity. | Credits: Getty Images
May GST collections in India surge 16.4% to ₹2.01 lakh crore
India's GST collections for May reached ₹2.01 lakh crore, marking a 16.4% year-on-year increase. This milestone was achieved for the second consecutive month, driven by a significant 25.2% rise in GST from imports and a 13.7% increase in domestic transactions. Despite a slight dip from April's record collections, the growth underscores the resilience of imports.
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The increase in GST collections was primarily driven by an increase in GST from imports, suggesting resilience in imports despite threats from tariffs.
Despite a decrease from April's peak, the GST collections in May highlight robust economic activity. | Credits: Getty Images
The gross Goods and Services Tax (GST) collection for May was ₹2.01 lakh crore, a 16.4% increase year-on-year from the collection in the same month last year of ₹1.72 lakh crore, hitting the ₹2 lakh crore milestone for a second consecutive month this year, according to data released by the Ministry of Finance on Sunday.
However, the collection fell from April’s record-breaking collection of ₹2.37 lakh crore, a 12.6% increase from last year. The figure last month exceeded the existing record revenue since GST was introduced in July 2017 of ₹2.10 lakh crore in April of last year.
According to the ministry, the growth from the year-ago period was primarily driven by a 25.2% surge in GST collected from imports—suggesting that imports remain resilient despite the threats posed by tariffs—along with a 13.7% increase from domestic transactions.
The gross GST revenue from imports in May was ₹51,266 crore, while domestic transactions were ₹1,49,785 crore. The overall gross GST revenue was ₹4.37 lakh crore, a 14.3% increase from the same period last year of ₹3.83 lakh crore.
In the breakdown of May GST collections, the gross central GST collections were ₹35,434 crore. State GST, on the other hand, was ₹43,902 crore, and integrated GST was approximately ₹1.09 lakh crore. The cess collections in May were ₹12,879 crore.
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Major states, including Maharashtra, West Bengal, Karnataka, and Tamil Nadu, recorded collections surged between 17% and 25%, while states such as Gujarat, Andhra Pradesh, and Telangana showed a range of de-growing 2% and registering a growth of 6%, and states like Madhya Pradesh, Rajasthan, Punjab, and Haryana, showed a 10% surge in GST collections.
The net GST revenue, after refunds, for May was ₹1.74 lakh crore, an increase of 20.4% compared to the revenue collected in the same month last year. Total refunds during May were ₹27,210 crore, a 4% year-on-year decrease.
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According to the government’s budget estimates this year, the GST collections are expected to increase by 11% from last year. The government expects GST collections to reach ₹11.78 lakh crore, inclusive of both central GST and cess collections.