India Business Journal - GST collections for May rise by 10% at Rs 1.73 l cr, driven by high consumption

ECONOMY

GST collections for May rise by 10% at Rs 1.73 l cr, driven by high consumption

IBJ Bureau
Jun 02, 2024

India’s Goods and Services Tax (GST) collections for May 2024 came in at Rs 1.73 lakh crore, up by 10 per cent year-on-year. The growth in mop-up was driven by an increase in domestic transactions (up by 15.3 per cent) and slowing of imports (down by 4.3 per cent).

The GST mop-up for April had hit a record high of Rs 2.1 lakh crore.

“A decline in collections on a month-on-month basis could be due to year-end tax payments in May and potentially stagnant auto sales. 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, a tax partner of EY.

After accounting for refunds, the net GST revenue for May came in at Rs 1.44 lakh crore, reflecting growth of nearly 7 per cent compared to that of the same period last year, the Finance Ministry said in a release on Saturday.

The gross GST collections in the FY25 till May 2024 are at Rs 3.83 lakh crore. This represents an 11.3 per cent year-on-year growth due to a significant increase in domestic transactions (up by 14.2 per cent) and a marginal rise in imports (up by 1.4 per cent).

Of the total collections for May 2024, the government garnered Rs 32,409 crore via central GST, Rs 40,265 crore through State GST and the integrated GST mop-up came in at Rs 87,781 crore, including Rs 39,879 crore collected on imported goods.