The Ministry of Finance revealed figures on Sunday that showed that India’s gross Goods and Services Tax (GST) receipts for May 2025 were Rs 2.01 lakh crore, a 16.4% increase over the Rs 1.72 lakh crore collected in May 2024. Following consecutive months of robust tax collections, this follows April’s record-breaking GST income of Rs 2.37 lakh crore.
A 13.7% increase in domestic transactions and a 25.2% increase in GST collected from imports drove the year-over-year growth. The total gross GST revenue for the month under review was Rs 51,266 crore from imports and Rs 1.50 lakh crore from domestic sources.
State GST (SGST) income was Rs 43,902 crore, integrated GST (IGST) revenue was around Rs 1.09 lakh crore, and total federal GST (CGST) revenue was Rs 35,434 crore in May. The GST compensation cess also brought in Rs 12,879 crore for the government. At the same time, overall refunds for May decreased by 4% to Rs 27,210 crore.
He went on to say that due to continued geopolitical difficulties worldwide, similar GST collection figures, with minor increases, are anticipated in June.
It is evident that imports, not domestic consumption, are the primary driver of this month’s increase in GST revenue. The year-to-date numbers show a similar pattern. This, along with the fact that export refunds are not increasing in line with this, illustrates how import growth is significantly outpacing export growth.
The government may have the leeway to consider rate rationalization, on which much work has already been done, if growth stays in this range for the next few months.
