Goods and Services Tax collection jumps 16% in May, stays above Rs 2 lakh crore

This comes after a record high Goods and Services Tax (GST) collection in April, when the revenues touched an all-time high of Rs 2.37 lakh crore.

In April, collections had hit an all time high of Rs 2.37 lakh crore, rising 13 percent from the previous month. India’s consumption growth continued to shine with gross Goods and Services Tax collection rising 16% in May to Rs 2.01 lakh crore.

May marks the second consecutive month with collections staying above Rs 2 lakh crore mark.“It’s encouraging to see GST collections once again cross the ₹2 lakh crore mark. While last month’s spike was expected with year-end reconciliations, the consistency this month along with a 16 plus percent year-on-year growth points to strong underlying momentum and a recovery that’s clearly taking hold,” said Abhishek Jain, head, indirect tax , KPMG India.

In April, collections had hit an all time high of Rs 2.37 lakh crore, rising 13 percent from the previous month.Net GST revenue, which accounts for refunds rose faster at 20.4 percent to Rs 1.73 lakh crore.

Gross domestic revenue was up 13 percent, while import revenue was 25.7 percent higher during the month.India’s economy performed well in the fourth quarter of the year, despite consumption tapering off slightly from the third quarter.

Data released on May 30 showed that full the year consumption rebounded from 5.6 percent growth witnessed in FY24. India’s economy met its 6.5 percent growth target, as growth touched 7.4 percent mark in January-March quarter.

Consumption is still lopsided though, with rural areas doing better, but urban areas exhibiting a K-shaped trend. This is also visible in the data for industrial growth. Consumer durable growth has remained steady, while non durable continues to contract.

In April, consumer durable growth expanded 6.4 percent compared with 6.9 percent in the previous month. Consumer non-durables growth has contracted 1.7 percent.