New Delhi – June 2, 2025:
India’s economy continues to show signs of strength as the Goods and Services Tax (GST) collection for May 2025 reached a robust ₹2.01 lakh crore, marking a 16.4% year-on-year increase. This surge in GST revenue underscores resilient domestic demand, a positive economic outlook, and improved compliance across sectors.
This is the third instance since the implementation of GST in 2017 that collections have exceeded ₹2 lakh crore, with both April and May 2025 crossing this key threshold. April had recorded an all-time high of ₹2.37 lakh crore, attributed largely to end-of-financial-year adjustments.
“The ₹2 lakh crore mark has now become the new normal in GST collections,” said a senior finance official, highlighting the growing maturity and depth of India’s tax ecosystem.
Key Highlights:
- GST Collection in May 2025: ₹2.01 lakh crore
- May 2024 Comparison: ₹1.72 lakh crore
- Annual Growth: 16.4%
- Domestic GST Revenue: ₹1.50 lakh crore (↑13.7%)
- GST on Imports: ₹51,266 crore
- Refunds Issued: ₹27,210 crore (↓4%)
- April-May FY25 Total: ₹4.38 lakh crore (↑14.3% from ₹3.83 lakh crore in FY24)
The consistent rise in collections comes amidst optimism over a favorable monsoon and expectations of heightened post-festival economic activity. The growth also reflects increased consumption patterns, with local demand playing a central role.
State-Wise Performance Shows Uneven Growth
Despite the national upswing, state-wise GST collection reveals significant disparities.
- States like Maharashtra, Tamil Nadu, Karnataka, and West Bengal saw GST growth of 17–25%, driven by strong industrial and consumption activity.
- Madhya Pradesh, Punjab, Haryana, and Rajasthan recorded 10% growth.
- Gujarat, Andhra Pradesh, and Telangana saw only a 6% increase, prompting further analysis into regional economic dynamics and sectoral performance.
For instance, Gujarat, an industrial heavyweight, posted a GST collection of ₹11,737 crore in May, up from ₹11,325 crore in April — a modest 6% rise. Seasonal and sector-specific factors are expected to have influenced these figures.
Economic Outlook
The rising GST collections signal continued momentum in India’s economic recovery, despite global uncertainties. It reflects growing consumer confidence and consistent business activity across multiple sectors.
With domestic demand strengthening, and fiscal revenues on a healthy trajectory, the data reinforces optimism for a stronger economic performance in FY25, especially as the festival season and monsoon-led rural demand begin to take shape.
India’s ability to sustain ₹2 lakh crore-plus GST collections could also pave the way for future policy stability, infrastructure investments, and fiscal consolidation, making it a key indicator to watch in the coming quarters.