Goods and Service Tax, or GST collection in May this year has hit an amount of Rs 1,40,885, the finance ministry said in a statement on Wednesday. This is an increase of 44 per cent in respect to the year-on-year basis, the Centre has said. However, this is a drop of 16 per cent as compared to the GST collections in April.
The gross GST revenue collected in the month of May 2022 is Rs 1,40,885 crore of which CGST is Rs 25,036 crore, SGST is Rs 32,001 crore, IGST is Rs 73,345 crore (including Rs 37469 crore collected on import of goods) and cess is Rs 10,502 crore (including Rs 931 crore collected on import of goods).
“The collection in the month of May, which pertains to the returns for April, the first month of the financial year, has always been lesser 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,” said the finance ministry in its statement.
Experts also agreed that it was normal for GST collections in May to be lesser than that of GST collections in April, as the latter pertains to the returns in March which is the closing of the financial year.
“The stability demonstrated by GST collections exceeding Rs1.4 lac Cr 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,” said MS Mani, partner at Deloitte India
“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,” Mani added.
This is only the fourth time the monthly GST collection crossed Rs 1.40 lakh crore mark since inception of GST and third month at a stretch since March 2022. “The revenues for the month of May 2022 are 44 per cent higher than the GST revenues in the same month last year of Rs 97,821 crore. During the month, revenues from import of goods was 43 per cent higher and the revenues from domestic transaction (including import of services) are 44 per cent higher than the revenues from these sources during the same month last year,” said the finance ministry.
“It is hoped that consistent record breaking collections sets a new expected average and sets a positive tone, as the GST Council deliberates rate rejigs and continues to seek to address pro revenue interpretations by way of clarification,” said Mahesh Jaising, partner and leader of Indirect Tax at Deloitte India.
GST collections in May have dropped 16 per cent on a monthly basis, while GST collections in April had touched an all time high of Rs 1.68 lakh crore. This month, Daman and Diu, Ladakh, Lakshwadeep, Manipur and Goa registered the highest growth.
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