After accounting for refunds, the net GST revenue till May stood at Rs 3.36 trillion, reflecting a growth of 11.6 per cent compared to the same period last year.
India’s goods and services tax (GST) collection in May rose 10 per cent year-on-year (Y-o-Y) to Rs 1.73 trillion, taking overall collection to Rs 3.83 trillion so far in the current financial year (FY25), government data showed on Saturday.
This is in line with the GDP estimates, which indicate a robust economy and improved compliance. The trend also indicates that monthly collection will remain above Rs 1.7 trillion during the year.
However, the May collection declined compared to April mainly due to factors like higher year-end tax payments.
Experts said June mop-up might remain flat due to heat waves impacting consumption across India.
In April, tax collection had touched a record Rs 2.10 trillion.
“The combination of summer heatwaves and lower auto sales might lead to flat or lower GST collections in June 2024 compared to April’s peak,” said Saurabh Agarwal, Tax Partner, EY.
The gross GST collections in the FY25 till May stood at Rs 3.83 trillion, an impressive 11.3 per cent Y-o-Y growth, driven by a strong increase in domestic transactions, (up 14.2 per cent) and marginal increase in imports (up 1.4 per cent), finance ministry said while releasing provisional data for May.
“These collections, which relate to supply of goods and services transactions in April24, for which GST has been paid in May24, indicate the beginning of a new normal in excess of Rs.1.7 trillion in FY25 compared to Rs 1.6 trillion during FY24,” said M.S Mani, partner, Deloitte India.
The resilience shown by the GST collections, without significant seasonal or event based variations across recent months, indicates the maturity of the GST system, added Mani.
Data showed a rise in GST collections from Jammu & Kashmir, Manipur, Puducherry, and Arunachal Pradesh, suggesting growing consumption in these developing regions and pointing towards a broader economic progress.
Additionally, increased GST in northern states like Delhi, Uttar Pradesh, etc., might be due to election spending and a surge in purchases of fans, coolers, and ACs caused by the higher temperatures compared to last year, said Agarwal.
During May, the BJP-led government settled Rs 38,519 crore to Central GST and Rs 32,733 crore to State GST from the net Integrated GST collected of Rs 67,204 crore. This translates to a total revenue of Rs 70,928 crore for CGST and Rs 72,999 crore for SGST in May, 2024, after regular settlement.
First Published: Jun 01 2024 | 8:18 PM IST
