GST collections in May up 10% to Rs 1.73 lakh crore

This growth was mainly driven by mop-up from domestic transactions (up 15.3%) even as collections from imports slowed down to 4.3%.
GST collections in May up 10% to Rs 1.73 lakh crore

Continuing with the trend of robust growth, GST collections in May logged a 10% year-on-year increase at Rs 1.73 lakh crore. This growth was mainly driven by mop-up from domestic transactions (up 15.3%) even as collections from imports slowed down to 4.3%. After accounting for refunds, the net GST collections for May 2024 stand at Rs 1.44 lakh crore, reflecting a growth of 6.9% compared to the same period last year. In April, the gross GST collections crossed Rs 2 lakh crore for the first time.

Of the Rs 1.73 lakh crore, central GST collections stood at Rs 32,409 crore, SGST at Rs 40,265 crore and integrated GST at Rs 87,781 crore (including Rs 39,879 crore from imported goods). Collections from cess stood at Rs 12,284 crore, including Rs 1,076 crore collected on imported goods. After regular settlement from IGST, total revenue under CGST is ₹70,928 crore and under SGST is ₹72,999 crore.

The gross GST collections in FY 25 till May 2024 stood at Rs 3.83 lakh crore, showing an 11.3% year-on-year growth, driven mainly by 14.2% increase in collections from domestic transactions. After accounting for refunds, the net GST revenue in the FY 2024-25 till May 2024 stands at ₹3.36 lakh crore, reflecting a growth of 11.6% compared to the same period last year.

Among the larger states, Uttar Pradesh showed a 22% year-on-year growth in May collections, followed by Gujarat at 16%, Karnataka (15%) and Andhra Pradesh (15%). Collections from Maharashtra grew at 14% and Rajasthan 13%. Growth in collection from Tamil Nadu was below the national average at 9%. Among smaller states, Delhi clocked 46% growth, Haryana 28% and Punjab 26%. Hill states like J&K and Uttarakhand also witnessed more than 20% growth in collection.

According to Saurabh Agarwal, Tax Partner, EY India, rise in GST collections from Jammu & Kashmir, Manipur, Puducherry and Arunachal Pradesh suggests growing consumption in these developing regions, indicating broader economic progress. He further says that 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.

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