Strong Growth Continues for India’s GST Revenue

India’s gross GST collections surged by 16.4% in May, reaching over ₹2.01 lakh crore. This impressive growth follows April’s record-breaking collection of ₹2.37 lakh crore, indicating strong and consistent revenue generation.


Key Figures from May’s Collections:

  • Domestic transactions saw a 13.7% rise, contributing approximately ₹1.50 lakh crore.
  • GST revenue from imports jumped by a significant 25.2% to ₹51,266 crore.
  • Central GST (CGST) revenues stood at ₹35,434 crore.
  • State GST (SGST) revenues were ₹43,902 crore.
  • Integrated GST (IGST) amounted to about ₹1.09 lakh crore.
  • Cess revenues totaled ₹12,879 crore.

Compared to May 2024’s mop-up of ₹1,72,739 crore, these figures represent a substantial year-on-year increase.


Net GST Mop-Up and Refunds:

The net GST mop-up reached approximately ₹1.74 lakh crore, marking a robust 20.4% year-on-year growth. Total refunds processed during the month saw a slight dip of 4%, coming in at ₹27,210 crore.


Varied Growth Across States:

M.S. Mani, Partner at Deloitte India, noted the diverse growth rates in GST collections across different states, highlighting the need for detailed analysis of each state’s key sectors. For instance:

  • Maharashtra, West Bengal, Karnataka, and Tamil Nadu reported impressive increases ranging from 17% to 25%.
  • However, large states like Gujarat, Andhra Pradesh, and Telangana showed more modest increases of up to 6%.
  • States such as Madhya Pradesh, Haryana, Punjab, and Rajasthan experienced median increases of about 10%.

This variation suggests different underlying economic dynamics and compliance levels at the state level.

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