Rise in GST collection by 11.5% in May 2023

According to statistics that were made public by the Ministry of Finance on Thursday, GST revenues in May (for sales in April) reached Rs 1,57,090 crore, marking an increase of up to 11.5 percent year-on-year. A rise in economic activity, an increase in the number of e-way bills generated, and compliance measures taken by the tax authorities all contributed to an increase in GST collections.

According to the statistics, the revenues generated from the import of products in May were higher by 12 percent year-on-year, while the revenues generated from domestic transactions (including the import of services) were higher by 11 percent compared to the same month the previous year. In a sequential manner, GST collections reached a three-month low in May, and they were lower than the Rs 1,87,035 crore received in April, which represented year-end sales from March of the preceding fiscal year. With more anti-evasion measures being taken by the indirect tax authorities, such as the battle against bogus registrations, it is expected that the double-digit rise will continue for the next few months, according to the opinions of many experts. “The GST collections demonstrating a growth of 12% year on year are on expected lines and match with the government budget estimates for this fiscal,” said Abhishek Jain, National Head, Indirect Taxes, for KPMG in India. As a result of the comprehensive GST audits that are scheduled to be completed by the Department before September 2023, it is possible that these statistics may continue to rise in the months to come.

In May, the Goods and Services Tax (GST) brought in a total of 1,57,090 crore, of which 28,411 crore came from the Central GST. This is the tax that the Centre levies on intra-state sales of goods and services. There was a total of Rs 35,828 crore in state GST, which is the tax that the states levy on intra-state sales of goods and services. The integrated GST was Rs 81,363 crore, which includes Rs 41,772 crore collected on imports of goods. Cess was Rs 11,489 crore, which includes Rs 1,057 crore collected on the import of goods.