Gross GST Collections Rise 16.4% YoY to Over ₹2.01 Lakh Cr in May
The Goods and Services Tax (GST) collections in India have continued to show a positive trend, with the gross GST collection for May 2025 reaching a staggering ₹2.01 lakh crore. This marks a significant 16.4% increase from the ₹1.72 lakh crore collected in May 2024. This impressive growth comes on the heels of a record high GST collection in April, when the revenues touched an all-time high of ₹2.37 lakh crore.
In May, gross revenues from domestic transactions rose 13.7% to about ₹1.50 lakh crore. This increase is a testament to the robust economic growth and consumer confidence in the country. The GST collection numbers are a key indicator of the Indian economy’s performance, and these figures suggest that the country’s economy is on a strong footing.
One of the key factors contributing to the growth in GST collections is the increased compliance by taxpayers. The GST Council has implemented various measures to improve compliance, including the introduction of the e-way bill system and the simplification of return filing procedures. These measures have helped to reduce the compliance burden on taxpayers, making it easier for them to file their returns and pay their taxes on time.
Furthermore, the GST collections have been boosted by the growth in consumption and production in key sectors such as manufacturing, construction, and services. The Indian economy has been experiencing a strong recovery from the COVID-19 pandemic, driven by factors such as the government’s fiscal stimulus packages, monetary policy easing, and the roll-out of vaccines. This has led to an increase in economic activity, which has, in turn, driven up GST collections.
The GST collections have also been impacted by the increase in taxes on certain goods and services. The government has implemented various tax hikes on goods and services, including the imposition of a 10% cess on cess on luxury cars and a 1% tax on inter-state goods transport services. These tax hikes have contributed to the growth in GST collections and have helped the government to increase its revenue.
The GST collections have also been influenced by the growth in the e-commerce sector. The e-commerce industry has been growing rapidly in India, driven by the increasing adoption of digital payments and the growth of online shopping. The GST Council has implemented various measures to improve the tax compliance of e-commerce companies, including the introduction of a new e-commerce registration process and the requirement for e-commerce companies to collect and deposit GST on behalf of sellers.
In addition to the GST collections, the government has also been focusing on improving the ease of doing business in India. The government has implemented various measures to simplify the tax compliance process, including the introduction of a new tax return filing system and the simplification of tax audit procedures. These measures have helped to reduce the compliance burden on taxpayers and have made it easier for businesses to operate in India.
In conclusion, the gross GST collections for May 2025 have risen 16.4% YoY to over ₹2.01 lakh crore, marking a significant increase from the previous year. This growth is driven by the increased compliance by taxpayers, the growth in consumption and production in key sectors, and the implementation of various tax measures. The GST collections are an important indicator of the Indian economy’s performance, and these figures suggest that the country’s economy is on a strong footing.
