New Delhi, Jun 1 (PTI) Goods and Services Tax collections grew 10 per cent to Rs 1.73 lakh crore in May driven by an increase in domestic transactions, indicating a sustained economic momentum.
The collections, however, stood lower than the highest-ever mop-up of Rs 2.10 lakh crore recorded in April.
“The gross Goods and Services Tax (GST) revenue for the month of May 2024 stood at Rs 1.73 lakh crore,” the finance ministry said in a statement.
The 10 per cent year-on-year growth in May collection was driven by a strong increase in revenues from domestic transactions (up 15.3 per cent) amid slowing of imports (down 4.3 per cent).
After accounting for refunds, the net GST revenue for May 2024 stood at Rs 1.44 lakh crore, reflecting a growth of 6.9 per cent compared to the same period last year.
The gross GST collections in FY25 till May 2024 stood at Rs 3.83 lakh crore, which is a 11.3 per cent year-on-year growth, driven by a strong increase in domestic transactions (up 14.2 per cent) and marginal increase in imports (up 1.4 per cent).
After accounting for refunds, the net GST revenue in the FY 2024-25 till May 2024 stood at Rs 3.36 lakh crore, reflecting a growth of 11.6 per cent compared to the same period last year.
Experts said the collection numbers reflect the resilience of economy and continued growth momentum.
M S Mani, Partner, Deloitte India, said these collections, which relate to supply of goods and services transactions in April 2024, for which GST has been paid in May this year, indicate the beginning of a new normal in excess of Rs 1.7 trillion in FY25 compared to Rs 1.6 trillion during FY24.
“The resilience shown by the GST collections, without significant seasonal or event-based variations across recent months, indicates the maturity of the GST system. There will now be renewed confidence in moving ahead with the next stage of reforms in the coming months, without significant concerns on the revenue impact,” Mani said.
Pratik Jain, Partner, PwC India, said it is interesting to see in few states such as Delhi, Haryana and Punjab, growth over last year is much higher than average growth.
Abhishek Jain, Indirect Tax Head & Partner, KPMG, said a 10 per cent growth over last year same month and specially 15.3 per cent growth in GST collections on domestic supplies is impressive and shows the robustness of domestic economy.
Vivek Jalan, Partner of Tax Connect Advisory Services, said one reason of high collections is the recovery action taken by some GST departments for recovery of 100 per cent of demand amounts before the set up of GST tribunals.
“As the GST tribunals are expected to be set up this year, to this effect the collections may take a hit in the 4th quarter of this fiscal and thereafter,” Jalan added. PTI JD HVA
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.