GST receipts rise 3.2% in May despite war impact
Gross goods and services tax (GST) collections grew 3.2% year-on-year to Rs 1.94 lakh crore in May (April transactions) on a relatively strong base, signalling economic resilience despite the external shock from the West Asia war. Sequentially, collections contracted by 20.16% from an all-time high mop-up of Rs 2.43 lakh crore in April, which resulted from year-end tax settlements by businesses.
Excluding a one-time GST payment of Rs 10,000 crore in May last year on account of spectrum allocation, gross GST revenue grew 9% in May with domestic gross GST growth being 5%, the Finance Ministry said in a statement.
May GST receipts are the lowest in three months
Net GST revenue (after refunds) grew 3.3% to Rs 1.66 lakh crore in May, as refunds rose 2.6% to Rs 27,281 crore, driven largely by the import segment. Experts said modest growth in refunds reflects a continued focus on timely credit flow to businesses, providing much needed impetus.
The gross collection in May comprises Central GST (CGST) of Rs 37,397 crore, State GST (SGST) of Rs 45,143 crore, and Integrated GST (IGST) of Rs 51,990 lakh crore. The gross domestic revenue stood at Rs 1.34 lakh crore, recording a contraction of 2.6%.
Gross GST revenue from imports stood at Rs 59,654 crore, up 19.1%, reflecting resilience in trade flows despite ongoing global uncertainties and West Asia related geopolitical headwinds. Government sources said the bulk of import growth is driven by raw materials and intermediate inputs that feed India’s industrial production chain. A granular review of the data confirms that the surge is driven overwhelmingly by industrial raw materials and energy inputs, government sources said.
