India’s Goods and Services Tax (GST) collections maintained their robust growth in May 2024, reaching Rs 1.73 lakh crore ($21.1 billion USD). This marks a 10% year-on-year increase compared to May 2023, signalling a positive trend in economic activity.
Strong Domestic Growth Offsets Import Slowdown
The growth in GST revenue was primarily fueled by a significant 15.3% surge in domestic transactions. This indicates a healthy uptick in consumer spending and business activity within India. While imports saw a 4.3% decline, likely due to softening global demand, the strong domestic performance helped drive overall GST revenue upward.
Key Highlights of May 2024 GST Collections:
Gross GST Revenue: Rs 1.73 lakh crore
Year-on-Year Growth: 10%
Net GST Revenue (after refunds): Rs 1.44 lakh crore
Domestic Transactions Growth: 15.3%
Import Transactions Growth: -4.3%
FY 2024-25 Collections Show Positive Momentum
The positive trend extends to the cumulative GST collections for the fiscal year 2024-25 (April 2024 to May 2024). Total gross GST revenue for this period reached Rs 3.83 lakh crore, representing a substantial 11.3% increase compared to the same period last year. This robust performance is attributed to a combination of increased domestic consumption (up 14.2%) and a marginal rise in imports (up 1.4%).
State-Wise Trends and Inter-Governmental Settlements
The report also highlights state-wise GST collection data, with significant variations in growth rates. Maharashtra, Karnataka, and Gujarat remained top performers. The central government made substantial inter-governmental settlements, transferring funds from the Integrated Goods and Services Tax (IGST) pool to states to ensure their financial health.
Positive Outlook for India’s Economy
The sustained growth in GST revenue is a positive indicator for the Indian economy. It reflects increasing consumer confidence, robust business activity, and a broadening tax base.
