GST Collection In May Jumps 12% Y-O-Y To Rs1.57-Lakh Crore

GST collection in May 2023 jumped 12 percent to Rs 1,57,090 crore, according to the official statement released on Thursday. Of the total goods and services tax (GST) in May, CGST stood at Rs 28,411 crore, SGST at 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).

With this, the monthly GST revenue stands at over Rs 1.4 lakh crore for the 14th consecutive month. In the previous month of April 2023, GST collections had hit their highest-ever level of Rs 1,87,035 crore. For the first time, gross GST collection had crossed Rs 1.75 lakh crore mark.

“The revenues for the month of May 2023 are 12 percent higher than the GST revenues in the same month last year. During the month, revenue from import of goods was 12 percent higher and the revenues from domestic transactions (including import of services) are 11 percent higher than the revenues from these sources during the same month last year,” the finance ministry said in a statement.

The government has settled Rs 35,369 crore to CGST and Rs 29,769 crore to SGST from IGST. The total revenue of the Centre and states in May 2023 after the regular settlement is Rs 63,780 crore for CGST and Rs 65,597 crore for the SGST.

Abhishek Jain, national head (indirect taxes) at KPMG in India, said, “The GST collections demonstrating a growth of 12 percent year-on-year is on expected lines and matches with the Government budget estimates for this fiscal. With extensive department GST audits lined up before September 2023, these figures may likely go up from here in the months to come.”

Parag Mehta, partner (indirect tax) at N.A. Shah Associates, said, “GST collections in May 2023 at Rs 1,57,090 crores have surpassed expectations. The increase is due to strong economic recovery and strict compliance by the trade. The collections are bound to increase further due to the special two-month drive for detection of fake registrations and strict action against unscrupulous elements for misuse of an input tax credit.”

He added that the discontinuance of currency of 2,000 denominations has also led to the purchase of high-end and luxury items resulting in an increase in GST collections. Further, there has been a substantial increase in scrutiny and audits along with the effective use of artificial intelligence which will result in higher collections in the coming months. It now appears that collections above Rs 1,50,000 crore will be the new milestone.