GST Collection at Rs 1.73 Lakh Crore in May: A Year-on-Year Increase but a Drop from April

GST Collection at Rs 1.73 Lakh Crore in May: A Year-on-Year Increase but a Drop from April

The gross Goods and Services Tax (GST) collection for May 2024 stood at Rs 1.73 lakh crore, according to a release by the Ministry of Finance. This figure represents a 10% year-on-year growth, driven primarily by a significant increase in domestic transactions and a decrease in imports.

Year-on-Year Growth in GST Collection

The Ministry of Finance reported a 15.3% increase in domestic transactions and a 4.3% decrease in imports, contributing to the overall 10% year-on-year growth in GST collection for May 2024. After accounting for refunds, the net GST revenue for May 2024 is Rs 1.44 lakh crore, reflecting a 6.9% growth compared to the same period last year.

Breakdown of GST Components for May

In May, the Central Goods and Services Tax (CGST) was Rs 32,409 crore, the State Goods and Services Tax (SGST) was Rs 40,265 crore, and the Integrated Goods and Services Tax (IGST) was Rs 87,781 crore, including Rs 39,879 crore collected on imported goods. The Cess collection in May stood at Rs 12,284 crore, with Rs 1,076 crore collected on imported goods.

GST Collections in FY 2024-25

For the fiscal year 2024-25 until May 2024, the gross GST collections stood at Rs 3.83 lakh crore, marking an 11.3% year-on-year growth. This growth is driven by a 14.2% increase in domestic transactions and a marginal 1.4% increase in imports. After accounting for refunds, the net GST revenue for the same period stands at Rs 3.36 lakh crore, reflecting an 11.6% growth compared to the previous year.

Record High GST Collection in April

In April 2024, the gross GST collections surged to a record high of Rs 2.10 lakh crore, showing a 12.4% year-on-year growth. After refunds, the net GST revenue for April 2024 was Rs 1.92 lakh crore, indicating a 15.5% growth compared to the same period last year. The breakdown for April 2024 collections included Rs 43,846 crore for CGST, Rs 53,538 crore for SGST, and Rs 99,623 crore for IGST, including Rs 37,826 crore from imported goods.

Relevant Laws and Regulations

The GST in India is governed by several key laws:

1. The Central Goods and Services Tax Act, 2017 (CGST Act): Governs the collection of central GST.

2. The State Goods and Services Tax Act, 2017 (SGST Act): Governs the collection of state GST.

3. The Integrated Goods and Services Tax Act, 2017 (IGST Act): Governs the collection of GST on inter-state supplies and imports.

4. The Goods and Services Tax (Compensation to States) Act, 2017: Provides for compensation to states for the loss of revenue arising on account of the implementation of GST.

These laws collectively ensure the smooth collection and administration of GST, aimed at creating a unified tax structure across India.