India’s Goods and Services Tax (GST) collections once again breached the ₹2 lakh crore mark in May 2025, with total receipts standing at ₹2.01 lakh crore.
This marks the third time ever that GST revenues have crossed this threshold and the second consecutive month to do so, reflecting steady consumption and tax compliance across the country.
The May figures, which are based on business activities conducted in April, represent a 16% increase over the same month last year.
While April usually records peak collections due to year-end fiscal closures, May’s performance, only 15% lower than April’s record-breaking ₹2.14 lakh crore, still reflects robust economic activity.
A major driver behind this sustained performance has been a sharp rise in GST from imports, which grew by over 25% year-on-year.
In contrast, domestic GST witnessed around 14% growth. This pattern suggests an import-heavy consumption trend.
Tax expert Vivek Jalan attributed this to a possible slowdown in global exports, saying, “The data shows that import growth has far outpaced export growth. With export refunds not showing a similar rise, there’s a possibility that countries are dumping goods into India, potentially due to lower sales in Western markets.”
April’s E-Way Bill Surge Boosts May Revenue
The government had earlier reported a significant uptick in E-Way Bill generation in April 2025, reaching 11.93 crore- a 23% increase compared to the previous year and the second-highest tally ever.
This surge played a crucial role in boosting May’s tax collection.
Saurabh Agarwal, Tax Partner at EY India, suggested that while April’s record collections may have reflected year-end B2B sales, May’s steady performance points to continued consumer spending despite global uncertainties.
He added, “States and UTs such as Bihar, Sikkim, Tripura, and Andaman & Nicobar have shown consistent growth in collections, suggesting a broader economic expansion.”
Harsh Shah of Economic Laws Practice noted that this sustained high collection strengthens the case for GST rate rationalisation.
However, he cautioned that the uneven state-wise growth, with Maharashtra and Karnataka outperforming states like Telangana and Punjab, suggests that sectoral and seasonal factors might be influencing tax flows.
He called for deeper analysis to understand the underlying trends.
With consistent revenue performance and a broadening tax base, experts anticipate similar or slightly better GST collections in June.
The government, meanwhile, is expected to use this momentum to revisit tax rates and bolster economic policy amid ongoing geopolitical headwinds.
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