Rise in GST collection by 11.5% in May 2023

The GST collections in May (for sales in April) rose upto 11.5 per cent year-on-year to Rs 1,57,090 crore, data released Thursday by the Finance Ministry showed. GST revenues got support from an increase in economic activity, higher generation of e-way bills and compliance measures by the tax authorities.

Revenues from import of goods in May were 12 per cent higher year-on-year and the revenues from domestic transactions (including import of services) were 11 per cent higher than the same month last year, data showed. Sequentially, GST collections were at a three-month low in May and lower than Rs 1,87,035 crore collected in April, which had reflected year-end sales of March of the previous financial year. 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. 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.”

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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).