GST Collections Exceed ₹2 Lakh Crore in May Again

India's Goods and Services Tax (GST) collections have once again surpassed the ₹2 lakh crore mark in May 2025, signaling a robust economic recovery.

This marks the second consecutive month that GST revenues have crossed this threshold, underscoring sustained economic momentum. The consistent growth in GST collections reflects improved compliance and increased economic activity across various sectors. This positive trend could pave the way for further economic reforms and fiscal stability.

Top 5 Key Insights:

Consistent Revenue Growth: GST collections reached ₹2.01 lakh crore in May 2025, a 16.4% increase compared to ₹1.72 lakh crore in May 2024.

This consistent performance highlights the effectiveness of the GST system and its contribution to the national economy. The sustained growth indicates a positive trajectory for India's fiscal health.

Import and Domestic Contributions: The surge in GST revenue was fueled by a 25.2% increase in GST from imports and a 13.7% rise from domestic transactions. This indicates strong economic activity both within India and in its international trade relations. The healthy growth in both segments is a promising sign for overall economic stability.

Record-Breaking April Precedent: The May collections follow a record-breaking April 2025, during which GST collections hit an all-time high of ₹2.37 lakh crore, representing a 12.6% growth.

This consecutive strong performance underscores the resilience and potential of the Indian economy. The high base set in April further validates the significance of May's achievement.

Sectoral Variations: While overall GST collections are strong, variations exist across states, with Maharashtra, West Bengal, Karnataka, and Tamil Nadu showing robust growth (17–25%), while others like Gujarat, Andhra Pradesh, and Telangana lagged (up to 6%). These variations likely reflect sectoral or seasonal factors impacting different regional economies. Addressing these disparities will be crucial for balanced national growth.

Expert Optimism: Experts like Abhishek Jain from KPMG note that the sustained growth, coupled with a strong year-on-year jump, points to a clear economic recovery. This expert validation reinforces the positive outlook for India's economic future. Such insights provide confidence to investors and policymakers alike.

Expert Insight:

Abhishek Jain, Indirect Tax Head & Partner, KPMG: "It's encouraging to see GST collections once again cross the ₹2 lakh crore mark. While last month's spike was expected with year-end reconciliations, the consistency this month along with a 16 plus percent year-on-year growth points to strong underlying momentum and a recovery that's clearly taking hold."

Pratik Jain, Partner, Price Waterhouse & Co LLP: "The 16% growth signals a 'renewed upward momentum' and could provide room for rate rationalisation in the near future. If this trend continues, it may give the government the cushion to move forward with long-discussed GST reforms."

Wrap-up:

The consistent rise in GST collections above ₹2 lakh crore for two consecutive months reflects a resilient and growing Indian economy. This sustained momentum, driven by both domestic transactions and imports, provides a solid foundation for future economic policies and reforms. As the nation continues on this upward trajectory, it reinforces the potential for further growth and stability in the financial landscape.

The positive trend underscores India's ability to navigate economic challenges and emerge stronger.

Author Bio:

Rohan Desai has dedicated 10 years to analyzing business trends, technological innovations, and international trade dynamics. His expertise spans from startup ecosystems to global economic policy.

Citations: GST collections top Rs 2 lakh crore again in May, states show mixed collection trends