India’s gross Goods and Services Tax (GST) collection for May 2025 stood at Rs 2.01 lakh crore, according to data released by the Finance Ministry on Sunday. It registered a 16.4% year-on-year growth as compared to Rs 1.72 lakh crore collected in May 2024.
The year-on-year growth was driven by a 25.2% increase in GST collected from imports and a 13.7% rise from domestic transactions. Gross GST revenue from imports stood at Rs 51,266 crore, while domestic sources contributed Rs 1,49,785 crore.
“16% growth inGST collections in the month shows a renewed upward momentum after a few months of growth in the range of 11 to 12%. If the growth continues in this range for the next couple of months, it might provide the cushion for the Government to look at rate rationalisation, on which a lot of work has already been done,” says Pratik Jain, Partner, Price Waterhouse & Co LLP (PwC).
May marks the second consecutive month in which GST collections have remained above the Rs 2 lakh crore mark. The collections had surged by 12.6% to an all-time high of Rs 2.37 lakh crore in the previous month.
The net GST revenue for May, after refunds, stood at Rs 1,73,841 crore, up 20.4% compared to Rs 1,44,381 crore collected during the same period last year. Total refunds during the month stood at Rs 27,210 crore, down 4% year-on-year.
Meanwhile, gross domestic product (GDP) data released on May 30 showed that full-year consumption rebounded from the 5.6% growth witnessed in FY24. India’s economy met its 6.5% growth target, as growth touched the 7.4% mark in the January-March quarter.
In the Union Budget, the government projected an 11% increase in GST revenue for the year, estimating collections at Rs 11.78 lakh crore, including Central GST and compensation cess.
