The Ministry of Finance announced that the Goods and Services Tax (GST) collection for the month of May 2023 increased by 12% to reach ₹1.57 lakh crore. The gross GST revenue collected in May consisted of ₹28,411 crore of Central GST, ₹35,828 crores of State GST, ₹81,363 crores of Integrated GST (including ₹41,772 crores from import of goods), and ₹11,489 crores of cess (including ₹1,057 crores from import of goods).
In a statement, the ministry noted that the revenue collected in May 2023 was 12% higher compared to the GST revenue collected in the same month last year. Import of goods contributed to a 12% increase in revenue, while domestic transactions, including import of services, saw an 11% rise in revenue compared to the same period last year. It is worth mentioning that in May 2022, the GST collection amounted to approximately ₹1.41 lakh crore.
The previous month, April 2023, witnessed record-high GST collection, amounting to ₹1.87 lakh crore. Despite the slight decrease in GST collection in May compared to April, the 12% year-on-year growth indicates a positive trend and reflects the recovery of economic activity.
The increase in GST collection can be attributed to various factors, including the revival of economic growth, improved compliance, and increased government efforts to streamline tax administration. The implementation of measures to curb tax evasion and promote digital transactions has also contributed to higher GST revenue.
The government’s focus on reducing tax evasion and expanding the taxpayer base has yielded positive results, evident in the consistent growth of GST collections. This increased revenue will provide the government with additional resources to fund various developmental projects and initiatives.
The rise in GST collection reflects a positive outlook for the Indian economy, indicating a recovery from the impact of the COVID-19 pandemic. As economic activities resume and businesses regain momentum, it is expected that GST collections will continue to grow, supporting the government’s efforts to stimulate economic growth and development.
