• Notification Date: 07-06-2023
• Notification No: N/A

GST Collection Hikes by 12% YoY at Rs 1.57 Lakh crore in May

The Goods and Services Tax (GST) revenue collected in the month of May 2023 rose 12% on an annual basis to Rs 1.57 lakh crore. The Finance Ministry reported the GST collections for the month of April 2023 at Rs 1.87 lakh crore, the highest ever. 

"GST revenue collected in the month of May, 2023 is Rs 1,57,090 crore of which CGST is Rs 28,411 crore, SGST is Rs 35,828 crore, IGST is Rs 81,363 crore (including Rs 41,772 crore collected on import of goods) and cess is Rs 11,489 crore (including Rs 1,057 crore collected on import of goods)," said Ministry of Finance in a statement. 

"Monthly GST revenues more than Rs 1.4 lakh crore for 14 months in a row, with Rs 1.5 lakh crore crossed for the 5th time since inception of GST," said the ministry about the May collection. GST collection in May last year was about Rs 1.41 lakh crore. 

"During May, revenue from import of goods was 12% higher and the revenues from domestic transactions (including import of services) are 11% higher than the revenues from these sources during the same month last year," the ministry added. 

"GST revenues in May 2022 have modestly exceeded our expectations. Over the next few months, we expect GST revenues to print at Rs 1.55-1.65 lakh crore and record an expansion of 10-11% in YoY terms, broadly in line with the nominal GDP growth expected in FY24," said Aditi Nayar, Chief Economist, Head - Research & Outreach, ICRA Ltd. 

"As we had seen last year that Rs 1.4 lakh crore became the base, this year it seems Rs 1.5 lakh crore should be the base. The 12% YoY growth is aligned with the growth estimation made during the budget session earlier this year. The current year would also see some additional revenues coming from productions under various PLI schemes introduced in 2020-21. It's great to see the north-eastern states' contribution in terms of growth percentage being among the top-performing states along with Ladakh. 

"In terms of volume, Maharashtra, Gujarat, Karnataka along with Tamil Nadu clocked the maximum collection as these states have a large corporate base and attract most of the investments that come into India. The collections also reflect the efforts of state governments on continued focus on growth and ease of business operations which is attracting new investments. Most of the states are reflecting double-digit growth barring a few like Punjab (which is negative), Rajasthan and West Bengal. Lesser investment in these states as compared to other major states can also be considered as one of the reasons for slow growth in these states," said Ankur Gupta, Practice Leader (Indirect Tax), SW India.