New Delhi, June 1 Goods and services tax (GST) collection rose 12% year-on-year toRs 1,57,090 crore in May, 2023, according to data released by Finance Ministry on Thursday.
Out of the total GST mop-up during the previous month, CGST was Rs 28,411 crore,SGST was Rs 35,828 crore, IGST Rs 81,363 crore (including Rs 41,772 crore collected on import of goods) and cess was Rs 11,489 crore (including Rs 1,057 crore collected on import of goods).
The government settled Rs 35,369 crore to CGST and Rs 29,769 crore to SGST from IGST during the month of May.
The total revenue of Centre and the States in the month of May 2023 after regular settlement was Rs 63,780 crore for CGST and Rs 65,597 crore for the SGST.
“During the month, revenue from import of goods was 12% higher and the revenues from domestic transactions (including import of services) are 11% higher than the revenues from these sources during the same month last year,” Finance Ministry said.
Monthly GST revenues have been more than Rs 1.4 lakh crore for 14 months in a row, with Rs 1.5lakh crore crossed for the fifth time since inception of the new indirect tax regime.
Commenting on May GST numbers, M S Mani, Partner, Deloitte India, said these collections,while being lower than the previous year-end month, pertain to supply transactions undertaken in the first month of FY24 i.e. April 23 and viewed together with the projected GDP growth of 6.5% in FY24 estimated by RBI, augers very well for the GST collections in the coming months as well
.”While the collections in absolute terms are lower than the previous month – which had an embedded year end impact – it reflects a continuation of the inherently good economic performance across states witnessed since last year,” he said.
ICRA Chief Economist Aditi Nayar said that GST revenues in May 2022 have modestly exceeded our expectations.”Over the next few months, we expect GST revenues to print at Rs. 1.55-1.65trillion (Rs 1.55-1.65 lakh crore) and record an expansion of 10-11% in YoY terms, broadly in line with the nominal GDP growth expected in FY 2024,” she said.
