GST collection rises 10% to Rs 1.7 lakh crore in May – Times of India

New Delhi: Goods and Services Tax collection increased by 10 per cent to Rs 1,72,739 crore in the current financial year. May as the collection grows Domestic sources The shortfall was compensated by imports.
The latest data released by the RBI, based on collections in May for transactions that took place in April Finance Ministry On Saturday, it estimated that collections from domestic sources would be 15.3% higher, while those from imports would be 4.5% lower, indicating a slowdown in the value of shipments into the country that could be partly due to a fall in commodity prices.
For the last two years, higher-than-budgeted GST collections have helped the Centre increase its overall collections and reduce the fiscal deficit.

“These collections indicate the beginning of a new normal of over Rs 1.7 lakh crore in FY25, as against Rs 1.6 lakh crore during FY24. This is in line with recent GDP estimates that indicate a robust economy, not much affected by the election season or the heat wave across the country. GST CollectionThe recent months have seen no significant seasonal or event-based changes, reflecting the maturity of the GST system. “There will now be renewed confidence in moving ahead with the next phase of reforms in the coming months, without worrying about the impact such reforms may have on revenues,” said MS Mani, partner, Deloitte India.
From domestic sources, central GST collections grew by 14.1% to Rs 32,409 crore, while state GST collections stood at Rs 40,265 crore.
Manipur's SGST collection in May was up by 48%, which could also be a sign of normalcy returning in the state. It was followed by Delhi, which saw a 46% increase.
The laggards include Meghalaya (20% decline), Arunachal Pradesh (18% decline), Nagaland (14% decline) and Himachal Pradesh (1% increase).
Saurabh Agarwala, Tax Partner, EY India, said, “The increase in GST collections from Jammu & Kashmir, Manipur, Puducherry and Arunachal Pradesh indicates rising consumption in these developing regions, which is a sign of broad-based economic progress. Also, the increase in GST in northern states like Delhi, Uttar Pradesh, etc. could be due to election expenditure and increased purchases of fans, coolers and ACs due to higher temperatures compared to last year.”