GST Collections Witness Remarkable Growth Despite State Variations

GST collections in May surpassed Rs 2 trillion for the second consecutive month, posting a 16.4% increase. While imports drove revenue growth, state-wise variations were notable. Analysts suggest continued growth could lead to rate rationalization efforts by the government.

Gross GST collections remained robust in May, exceeding Rs 2 trillion for the second successive month, marking a 16.4 percent rise.

The increase in GST revenue was mainly driven by a significant boost in import-related taxes, with domestic transactions also contributing to the growth.

However, a detailed analysis reveals disparities among states, where large states witnessed varying growth rates, prompting experts to call for a sector-specific examination.

(With inputs from agencies.)