New Delhi: India’s goods and services tax (GST) collections rose 12% year-on-year to 1.57 trillion rupees ($19.06 billion) in May, a government statement showed on Thursday.
The government collected 1.41 trillion rupees as GST in May 2022 and a record 1.87 trillion rupees in April.
It expects to garner 9.56 trillion rupees through GST in the current fiscal year that ends in March 2024.
The western state of Maharashtra clocked a 16% year-on-year growth in tax receipts to 235.36 billion rupees in May, while the southern states of Karnataka and Tamil Nadu recorded increases of 12% and 13%, respectively.
The growth in GST collections meets expectations and the trend matches the government’s budget estimates for 2023/24, said Abhishek Jain, indirect tax head at KPMG in India.
He said that tax collections may go up in the coming months as the government is conducting extensive tax audits.
The monthly GST collected has topped the 1.5 trillion rupees-mark for the fifth time since the new tax regime was introduced in 2017.
“Over the next few months, GST revenues are expected to print at 1.55-1.65 trillion rupees and record an expansion of 10%-11% year-on-year, broadly in line with the nominal GDP growth expected in 2023/24,” said Aditi Nayar, an economist at ICRA.
India’s nominal growth is estimated to be 10.5% in the current fiscal year. ($1 = 82.4171 Indian rupees)
(Reporting by Nikunj Ohri; Editing by Sohini Goswami and Savio D’Souza)
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