GST collections rise 11.5% in May

Experts said the double-digit growth is likely to continue for next few months with more anti-evasion measures such as the drive against fake registrations being taken by the indirect tax authorities.

Vivek Jalan, Partner at Tax Connect Advisory, said: “The GST Clean up drive for fake registrations has started only on 16th May and shall continue upto 15th July. The impact of this may be seen in the upcoming months and may impact the domestic collections positively.”

Abhishek Jain, National Head, Indirect Taxes, KPMG in India, said: “The GST collections demonstrating a growth of 12% year on year is on expected lines and matches with the Government budget estimates for this fiscal. With extensive Department GST audits lined up before September 2023, these figures may likely go up from here in the months to come.”

As per state-wise GST revenue data, which shows GST revenue collected (not accrued), at least 20 states/ UTs recorded a higher growth rate than the overall 11.5 per cent rise in GST collections. In percentage terms, Chandigarh, Delhi, Sikkim, Madhya Pradesh and Jammu & Kashmir were among the top-ranking states, while in absolute terms, the highest level of GST was collected in Maharashtra, followed by Karnataka and Gujarat. Violence-affected Manipur recorded a 17 per cent decline in revenues collection in May.

“While the collections in absolute terms are lower than the previous month — which had an embedded year-end impact — it reflects a continuation of the inherently good economic performance across states witnessed since last year. The overall growth of 12% in the GST collections compared with the same month last year is also well reflected in the state wise collections with some of the major states also showing a growth of 11% to 13%. Hence, on a broad basis, the collections depict economic growth across states,” MS Mani, Partner, Deloitte India said.

Out of the May GST revenue of Rs 1,57,090 crore, Central GST, the tax levied on intra-state supplies of goods and services by the Centre, was Rs 28,411 crore. State GST, the tax levied on intra-state supplies of goods and services by the states, was Rs 35,828 crore. Integrated GST, the tax levied on all inter-state supplies of goods and services, was Rs 81,363 crore (including Rs 41,772 crore collected on import of goods) and cess was Rs 11,489 crore (including Rs 1,057 crore collected on import of goods).

The government has settled Rs 35,369 crore to CGST and Rs 29,769 crore to SGST from IGST. The total revenue of Centre and the States in May after regular settlement is Rs 63,780 crore for CGST and Rs 65,597 crore for SGST.