India’s Goods and Services Tax (GST) collections for May 2024 surged to ₹1.73 lakh crore, reflecting a 10% year-on-year increase. This growth was primarily driven by a 15.3% rise in domestic transactions, despite a 4.3% decline in imports.
The GST revenue for May follows a record-setting April, which saw collections hitting an all-time high of ₹2.1 lakh crore. After accounting for refunds, the net GST revenue for May stood at ₹1.44 lakh crore, showing a 7% growth compared to the same period last year, according to a release by the Finance Ministry on June 1.
For the fiscal year 2024-25, the cumulative gross GST collections up to May have reached ₹3.83 lakh crore, representing an 11.3% year-on-year growth. This increase is attributed to a substantial 14.2% rise in domestic transactions and a modest 1.4% increase in imports.
Breaking down the May collections:
- Central GST contributed ₹32,409 crore
- State GST amounted to ₹40,265 crore
- Integrated GST (IGST) stood at ₹87,781 crore, which includes ₹39,879 crore from imported goods
- GST cess collections were ₹12,284 crore, with ₹1,076 crore from imported goods
During May, the Centre settled ₹38,519 crore to central GST and ₹32,733 crore to state GST from the net IGST collection of ₹67,204 crore. This resulted in a total revenue of ₹70,928 crore for central GST and ₹72,999 crore for state GST for the month.
The continued rise in GST collections reflects robust economic activity, particularly in domestic transactions. The Finance Ministry’s report highlights the government’s efforts to streamline tax administration and compliance, which have contributed to the sustained growth in revenue.
The positive trend in GST collections is expected to support the government’s fiscal policies and public spending initiatives. Analysts suggest that the significant growth in domestic transactions indicates strong consumer demand and business activity, further bolstering economic recovery.
As the financial year progresses, the government remains focused on maintaining this upward trajectory in GST revenue, ensuring sufficient funds for development projects and social welfare programs. The data for the upcoming months will be closely watched to assess the consistency of this growth trend and its impact on the overall economic landscape.