GST Collections Surge by 10% in May, Indicating Strong Economic Momentum

Goods and Services Tax (GST) collections in May grew by 10% to Rs 1.73 lakh crore, driven by an increase in domestic transactions. However, this figure is lower than the record Rs 2.10 lakh crore in April. The trend signifies sustained economic strength amid fluctuating imports and refunds.

Goods and Services Tax (GST) collections surged by 10% in May, reaching Rs 1.73 lakh crore, according to the finance ministry. This growth, spurred by a 15.3% increase in domestic transactions, suggests a robust economic momentum despite a slowdown in imports, which decreased by 4.3%.

Despite the May collections being lower than April's record Rs 2.10 lakh crore, experts noted the resilience of the economy. 'These numbers indicate the beginning of a new normal in excess of Rs 1.7 trillion in FY25,' said M S Mani, Partner at Deloitte India.

The cumulative gross GST collections for FY25 up to May 2024 stood at Rs 3.83 lakh crore, reflecting an 11.3% year-on-year growth. After refunds, the net GST revenue was Rs 3.36 lakh crore with an 11.6% growth. Pratik Jain from PwC India and Abhishek Jain from KPMG noted impressive domestic growth figures, reaffirming economic stability.