The Gross Goods and Services Tax (GST) collections for May 2025 rose by 16.4 percent year-on-year to Rs 2.01 lakh crore, according to official government data. Although this is a healthy growth rate, the collections in May were lower compared to April’s record-high level of Rs 2.37 lakh crore. The slower collections in May reflect a moderation in domestic sales, while import GST collections showed robust gains.
Domestic and Import GST Collections: Contrasting Trends
In May, GST collections from domestic sales increased by 13.7 percent to Rs 1.50 lakh crore, which is down from Rs 1.90 lakh crore collected in April. This slowdown is mainly attributed to reduced business-to-business year-end transactions and shifting consumer spending habits amid global uncertainties.
Conversely, GST collections from imports grew strongly by 25.2 percent year-on-year, reaching Rs 51,266 crore in May, up from Rs 46,913 crore in April. This increase highlights the continued demand for imported goods.
The net GST collections, after accounting for refunds, rose by 20.4 percent to Rs 1.74 lakh crore, indicating sustained momentum in tax revenue.
Expert Insights on GST Growth and Economic Outlook
Industry experts view the growth in GST collections as an encouraging sign of economic recovery:
- Abhishek Jain (KPMG) emphasized that while April’s spike was due to year-end reconciliations, May’s steady 16 percent growth indicates “strong underlying momentum” and a recovering economy.
- Saurabh Agarwal (EY India) noted the decline in domestic GST collections might be due to changing consumer behavior and a fall in export refunds, which were down 36.25 percent, reflecting stockpiling adjustments.
GST Refunds and State-wise Collection Performance
GST refunds totaled Rs 27,210 crore in May, a 4 percent decrease from the previous year. Breakdown of refunds:
- Domestic refunds surged by 53.7 percent to Rs 18,314 crore
- Refunds related to imports dropped by 45.9 percent to Rs 8,896 crore
State-wise GST collection growth varied significantly:
- Top-performing states:
- Maharashtra: Rs 31,530 crore (17% growth)
- Karnataka: Rs 14,299 crore (20% growth)
- Tamil Nadu: Rs 12,230 crore (25% growth)
- Delhi: Rs 10,366 crore (38% growth)
- States with decline in collections:
- Andhra Pradesh: Rs 3,803 crore (-2%)
- Uttarakhand: Rs 1,605 crore (-13%)
- Mizoram: Rs 29 crore (-26%)
Experts suggest these wide variations are due to sectoral differences and seasonal factors that need deeper analysis.
Breakdown of GST Components in May 2025
The GST collections included:
- Central GST (CGST): Rs 35,434 crore
- State GST (SGST): Rs 43,902 crore
- Integrated GST (IGST): Rs 1.09 lakh crore
- Cess: Rs 12,879 crore
Key Takeaways
- Gross GST collections rose 16.4% year-on-year to Rs 2.01 lakh crore in May 2025
- Domestic GST growth slowed but import GST collections grew strongly by 25.2%
- Net GST collections increased by 20.4%, showing strong tax revenue momentum
- Refunds showed a mixed trend: domestic refunds increased sharply while import refunds declined
- State-wise collections varied, with some large states posting strong growth and others facing declines
- Experts view the GST growth as a positive indicator of India’s ongoing economic recovery