India’s Goods and Services Tax (GST) collections crossed the Rs 2 lakh crore mark for the second month in a row in May, reaching Rs 2.01 lakh crore, as reported by the government on Sunday. This marks only the third instance in GST history where collections have surpassed this significant threshold.
The May collections, which correspond to economic activity in April, showed a strong 16 per cent increase compared to the same month last year. While April usually sees the highest collections due to year-end financial transactions, May’s figures remained robust – only about 15 per cent lower than April’s record high.
This sustained growth comes on the heels of a sharp rise in E-Way Bill generation in April, which reached 11.93 crore – its second-highest level ever and a 23 per cent year-on-year increase. A closer look at the May GST data reveals that the surge was mainly driven by import-related taxes. GST from imports grew by over 25 per cent, significantly outpacing the roughly 14 per cent growth in domestic GST. This trend has also been reflected in the year-to-date figures.
