The Goods and Services Tax collection for May crossed over ₹1.40 lakh crore, up 44% against the same month last year. This is for the third time in a row the collection was above ₹1. 40 lakh crore and the Centre expects the collection in the coming months to remain above ₹1.40 lakh crore.
“The stability demonstrated by GST collections exceeding ₹1.4 lac crore over the past three months is a good indicator of the growth of the economy and ties in with the other macro economic indicators including the GDP numbers,” MS Mani, Partner, Deloitte India said.
This is the 11th month in a row that total GST mop-up has been above the ₹1-lakh-crore mark. And while the collection is lower than last month, experts say that this is not a case of worry, as traditionally April numbers, which pertains to collection in March, are always higher as taxpayers are paying quarterly based tax as well.
“The collection in May, which pertains to the returns for April, the first month of the financial year, has always been lesser than that in April, which pertains to the returns for March, the closing of the financial year,” the finance ministry said in a statement.
In the month of April, the government’s total GST collections stood at ₹1.68 lakh crore. Total number of e-way bills generated in the month of April 2022 was 74 million, which is 4% lower than 77 million e-way bills generated in the month of March.
Of the total collection in May, Central GST amounted to ₹25,036 crore, State GST was ₹32,001 crore and Integrated GST was ₹73,345 crore, and cess ₹10,502 crore.
State wise trend showed that most of the states posted healthy double digit growth in the collection. In May, the government settled ₹27,924 crore to Central GST and ₹23,123 crore to State GST from Integrated GST. As a result, the total revenue for the month after settlement was ₹52,960 crore for the Centre and ₹55,124 crore for State GST.