In May 2025, India collected ₹2.01 lakh crore in Goods and Services Tax (GST). This amount is 16.4% higher than the ₹1.72 lakh crore collected in May 2024, according to the Ministry of Finance. This increase shows that the country’s economy is growing and more businesses are paying taxes.
Surging by 12.6 per cent, Rs 2.37 lakh crore was the highest ever record of GST collection in India, which was collected in April 2025.
Year-on-year growth of GST collected from imports rose by 25.2%, and from domestic transactions, the rise is 13.7 per cent. Rs 51,266 crore was the gross GST revenue from the imports, and Rs 1,49,785 crore was from the domestic sources.
Rs 4.37 lakh crore was the gross Goods and Services Tax (GST) revenue for May, showing a 14.3% rise over Rs 3.83 lakh crore collected in the same period the previous year.
For May, the net GST revenue post refunds arrived at Rs 1,73,841 crore, up 20.4% over Rs 1,44,381 crore collected in May 2024. During the month, the total refunds reached Rs 27,210 crore, down 4% year-on-year.
The government in the budget targeted an 11% rise in the GST revenue for the year, estimating the collections at Rs 11.78 lakh crore, including Central GST and compensation cess.
There is a lower GST collection in the domestic sales in May (for sales in April) as against April (for year-end sales in March). GST collections are within our expectations, a 15 per cent drop from last month.
Compared to last month, the GST collections fell by approximately 21%, suggesting a transformation of consumer spending. And the previous months’ higher collections comprise year-end business-to-business sales propelled due to targets; this decrease shows a revision in the spending of the consumers, likely due to the global uncertainties.
Read Also: GST Collection Sees a Remarkable Growth of 11% in January 2025
A sectoral analysis is needed for the wide variations in the growth of GST collections in states. Collection increases of 17 per cent to 25 per cent are reported by the large states like Maharashtra, West Bengal, Karnataka, and Tamil Nadu, while the other large states like Gujarat, AP, and Telangana have shown gains of only 2% to 6%.
A median increase of 10 per cent has been specified by the states like MP, Haryana, Punjab, and Rajasthan. Hence, due to sectoral or seasonal factors, the average growth across the nation does not seem to be uniformly reflected across states, which needs analysis.
