Explained: GST collections up 44% y-o-y for April sales, why this is especially encouraging

Experts said that apart from improved economic activity, actions against tax evaders including efforts in audits and analytics helped push the growth in GST collections

GST collections had recorded the highest-ever level of Rs 1.68 lakh crore in the previous month for year-end sales. (File Photo)

Gross Goods and Services Tax (GST) collections rose 44 per cent year-on-year to Rs 1,40,885 crore in May (for sales in April), reflecting improved economic activity, enforcement actions and higher inflation, data released by the Finance Ministry showed.

GST collections had recorded the highest-ever level of Rs 1.68 lakh crore in the previous month for year-end sales. This is the fourth time that monthly GST collections have crossed the Rs 1.40 lakh crore mark since the inception of GST, and the third month in a row since March 2022. GST collections in May 2021 had stood at Rs 97,821 crore.

The broader trend

“The collection in the month of May, which pertains to the returns for April, the first month of the financial year, has always been less than that in April, which pertains to the returns for March, the closing of the financial year. However, it is encouraging to see that even in the month of May 2022, the gross GST revenues have crossed the Rs 1.40 lakh crore mark,” the Finance Ministry statement said.
The total number of e-way bills generated in April 2022 were at 7.4 crore, 4 per cent less than 7.7 crore e-way bills generated in March 2022, it said.

Revenues from import of goods were 43 per cent higher and the revenues from domestic transactions (including import of services) were 44 per cent higher than the revenues from these sources during the same month last year.

Enforcement action

Experts said actions against tax evaders including efforts in audits and analytics helped push the growth in GST collections.
MS Mani, Partner, Deloitte India said, “The stability demonstrated by GST collections exceeding Rs 1.4 lakh 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.

“Significant efforts in audits and analytics have also led to a drive against tax evaders, inculcating a tax compliance culture. The reduction in collections compared with the previous months was expected as the collections for March, being the last month of the fiscal year, have always been more than other months of the year.”

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Aanchal Magazine

Aanchal Magazine is a Senior Assistant Editor with The Indian Express, serving as a leading voice on the macroeconomy and fiscal policy. With over 13 years of newsroom experience, she is recognized for her ability to decode complex economic data and government policy for a wider audience. Expertise & Focus Areas: Magazine’s reporting is rooted in "fiscal arithmetic" and economic science. Her work provides critical insights into the financial health of the nation, focusing on: Macroeconomic Policy: Detailed tracking of GDP growth, inflation trends, and central bank policy actions. Fiscal Metrics: Analysis of taxation, revenue collection, and government spending. Labour & Society: Reporting on labour trends and the intersection of economic policy with employment. Her expertise lies in interpreting high-frequency economic indicators to explain the broader trajectory of the Indian economy. Personal Interests: Beyond the world of finance and statistics, Aanchal maintains a deep personal interest in the history of her homeland, Kashmir. In her spare time, she reads extensively about the region's culture and traditions and works to map the complex journeys of displacement associated with it. Find all stories by Aanchal Magazine here ... Read More