NEW DELHI: The goods and services tax (GST) revenue grew 12% year-on-year (YoY) to Rs 1.57 lakh crore in May, according to the data released by the government on Thursday. The revenue collection crossed Rs 1.4 lakh crore for the fourteenth month in a row and only for the fifth time it has crossed Rs 1.5 lakh crore. However, the GST collection in May is lower than April collection of Rs 1.87 lakh crore, the highest monthly collection so far. The healthy GST number comes a day after a strong fourth quarter GDP growth number, adding to the overall euphoria around India’s robust economic performance.
“While the collections in absolute terms are lower than the previous month, which had an embedded year end impact, it reflects a continuation of the inherently good economic performance across states witnessed since last year,” MS Mani, Partner, Deloitte India said. Of the total Rs 157,090 crore, central GST accounted for Rs 28,411 crore, state GST Rs 35,828 crore, integrated GST Rs 81,363 crore (including Rs 41,772 crore collected on import of goods) and cess accounted for Rs 11,489 crore (including Rs 1,057 crore collected on import of goods), according to the finance ministry statement.
After regular settlement for IGST, the central government (CGST) received Rs 63,780 crore and states received Rs 65,597 crore. Continuous efforts of the GST department to plug revenue leakages and curb tax evasion have helped the government increase the average GST collection to Rs 1.5 lakh crore in the previous year, and analysts expect the trend to continue in the current financial year.
Abhishek Jain, partner & national head, Indirect Tax, KPMG in India, says with extensive GST department audits lined up before September 2023, these figures could go up from here in the months to come. The GST department has also launched a special drive to weed out fake GST registrations, which are primarily used for issuing fake invoices against which input tax credits are being availed. The overall healthy GST collections in May were also reflected in the state-wise collections with some of the major states showing a growth of 11% to 13%. Mani of Deloitte says that the collections depict economic growth across states.
GST mop-up crosses Rs 1.4L cr for 14th month
Revenue collection crossed Rs 1.4 lakh crore for the fourteenth month in a row and only for the fifth time it has crossed Rs 1.5 lakh crore. However, the GST collection in May is lower than April collection of Rs 1.87 lakh crore, the highest monthly collection so far.