GST collection in May reaches Rs 1.40 Lakh Crore; 16% drop from April record

The goods and services tax, or GST levy in May this year, reached an amount of 1,40,885 rupees, the Ministry of Finance said in a statement on Wednesday. This is a 44% increase over the previous year, the Center said. However, this is down 16% from GST collections in April.

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 (of which Rs 37,469 crore collected on importation of goods) and the tax is Rs 10,502 crore (including Rs 931 crore collected on importation of goods).

“The collection for the month of May, which concerns declarations for April, the first month of the financial year, has always been less than that for April, which concerns declarations for March, the end of the financial year. However, it is encouraging to see that even in the month of May 2022, gross GST revenues have crossed the Rs 1.40 lakh crore mark,” the Ministry of Finance said in its statement.

The experts also agreed that it is normal that the GST collections in May are lower than the GST collections in April, because the latter relates to the declarations of March, which is the end of the financial year.

“The stability shown by the GST collections exceeding Rs1.4 lac Cr over the last three months is a good indicator of the growth of the economy and is linked to the other macroeconomic indicators, including the GDP figures. Strong auditing and analytical efforts have also led to a campaign against tax evaders, instilling a culture of tax compliance,” said MS Mani, Partner at Deloitte India.

“The reduction in collections compared to previous months was expected because the collections in March, being the last month of the fiscal year, were always higher than the other months of the year,” Mani added.

This is only the fourth time the monthly GST collection has crossed the Rs 1.40 lakh crore mark since the inception of the GST and the third month in a row since March 2022. 2022 is 44% higher than GST revenue in the same month last year of Rs 97,821 crore. During the month, income from the import of goods increased by 43% and income from domestic transactions (including the import of services) is 44% higher than income from these sources during the same month of l last year,” the finance ministry said.

“We expect consistent record collections to set a new expected average and set a positive tone as the GST Board deliberates rate changes and continues to seek to address pro revenue interpretations through clarifications,” said Mahesh Jaising, Partner and Indirect Tax Leader at Deloitte India.

GST collections in May fell by 16% on a month-on-month basis, while GST collections in April hit an all-time high of Rs 1.68 lakh crore. This month, Daman and Diu, Ladakh, Lakshwadeep, Manipur and Goa recorded the highest growth.

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