India’s GST Supply Touch ₹2.01 Lakh Crore in May, Showing Carried Economic Momentum

Last Updated Jun - 02 - 2025, 04:21 PM | Source : Fela News

India’s GST return rose 16.4% in May to ₹2.01 lakh crore, shows strong recovery despite a domestic slowdown.

India’s Goods and Services Tax (GST) revenue for May raised at ₹2.01 lakh crore, record the 16.4% increase compared to the same month last year. Although this month’s collection is lower than April’s all-time high of ₹2.37 lakh crore, the year-on-year growth indicates that the economy continues to move in a positive direction.

The rise in collections was largely driven by a surge in GST from imports, which went up to ₹51,266 crore in May from ₹46,913 crore in April. Nevertheless, GST from domestic transactions saw a decline, falling to ₹1.50 lakh crore from ₹1.90 lakh crore in April. Experts mention that April's higher numbers were due to businesses closing their financial year, which pushed sales upward temporarily. The dip in domestic collections may point to risky consumer spending, influenced by global economic uncertainties.

After accounting for refunds, net GST revenue increased by 20.4% to ₹1.74 lakh crore. Surprisingly, export refunds saw a sharp 36.25% drop in May, suggesting that April's boost in exports may have been driven by stockpiling due to upcoming international tariffs.

Among states, Maharashtra guide with ₹31,530 crore in collections, go after Karnataka (₹14,299 crore), Tamil Nadu (₹12,230 crore), Gujarat (₹11,737 crore), and Delhi (₹10,366 crore), which saw the highest extension of 38%. Meanwhile, states like Andhra Pradesh, Uttarakhand, and Mizoram reported declines.

The total breakup of May’s GST includes ₹35,434 crore from Central GST, ₹43,902 crore from State GST, ₹1.09 lakh crore from merging GST, and ₹12,879 crore from purpose.

While the overall numbers reflect solid performance, the trash growth across states and the fall in domestic collections towards at sector-specific variations and changing consumer behavior.