GST Collection for May update:
India’s Goods and Services Tax (GST) collections for May 2024 reached ₹1.73 lakh crore, marking a 10 percent year-on-year increase. This growth was driven by a 15.3 percent rise in domestic transactions and a 4.3 percent decline in imports.
Saurabh Agarwal, Tax Partner at EY, noted, “The decline in collections on a month-on-month basis could be attributed to year-end tax payments in May and potentially stagnant auto sales. The combination of summer heatwaves and lower auto sales might lead to flat or lower GST collections in June 2024 compared to April’s peak.”
After accounting for refunds, net goods and service tax revenue for May stood at ₹1.44 lakh crore, reflecting a nearly 7 percent growth compared to the same period last year, according to the finance ministry’s June 1 release.
Gross goods and service tax collections for FY25 until May 2024 were ₹3.83 lakh crore, representing an 11.3 percent year-on-year growth due to a significant 14.2 percent increase in domestic transactions and a marginal 1.4 percent rise in imports.
In May 2024, the government collected ₹32,409 crore via central goods and service tax, ₹40,265 crore through state goods and service tax, and ₹87,781 crore from integrated goods and service tax, including ₹39,879 crore on imported goods. goods and service tax cess collections for the month stood at ₹12,284 crore, including ₹1,076 crore on imported goods.
The Centre settled ₹38,519 crore to central goods and service tax and ₹32,733 crore to state goods and service tax from the net integrated goods and service tax collection of ₹67,204 crore, resulting in total revenue of ₹70,928 crore for central goods and service tax and ₹72,999 crore for state goods and service tax in May, the release added.
