GST collections cross Rs 2 lakh crore in May; experts urge detailed state-wise analysis

India's Goods and Services Tax (GST) collections for May 2025 surged past ₹2.01 lakh crore, marking a 16.4% year-on-year increase from ₹1.72 lakh crore in May 2024.

This robust growth was fueled by strong domestic economic activity, with domestic transactions contributing approximately ₹1.50 lakh crore, a 13.7% rise compared to the previous year. Additionally, GST revenue from imports saw a significant 25.2% increase to ₹51,266 crore, reflecting heightened cross-border trade and economic integration.

After accounting for refunds, the net GST revenue stood at ₹1,73,841 crore, up 20.4% from ₹1,44,381 crore in May 2024.

State-wise, Maharashtra led with the highest GST receipts at ₹23,356 crore, a 16% increase, followed by Karnataka with collections of ₹10,317 crore, growing 12%.

Experts view this sustained growth positively but emphasize the need for detailed state-wise and sectoral analysis. Abhishek Jain, Indirect Tax Head & Partner at KPMG, said, "It’s encouraging to see GST collections once again cross the ₹2 lakh crore mark."

M S Mani, Deloitte India Partner, noted, "The wide variations in the growth of GST collections across states require a thorough analysis across the sectors that are important in each state."

This performance follows a record high in April when GST revenues hit an all-time ₹2.37 lakh crore, underscoring a continuing trend of strong tax collections amid a resilient economy.

The surge in Integrated GST (IGST) collections, which rose 25%, further highlights the growing import activity at the start of the financial year despite global trade uncertainties.

Overall, the data signals a healthy economic momentum, with GST collections reflecting both domestic consumption and international trade dynamics, while experts call for granular analysis to better understand regional and sectoral growth patterns.

India's GST collections for May 2025 crossed ₹2.01 lakh crore, a 16.4% rise from May 2024, driven by strong domestic activity and a 25.2% surge in import GST. Experts urge detailed state-wise analysis to understand sectoral growth variations amid robust tax performance.