The Finance Ministry said in a statement on Wednesday that the Goods and Services Tax or GST collection in May this year has gone up to Rs 1,40,885. The Center has said that this is an increase of 44 per cent on a year-on-year basis. However, this is a drop of 16 per cent in comparison to GST Collection in April
gross GST revenue collected 1,40,885 crore in the month of May 2022, of which CGST is Rs 25,036 crore, SGST is Rs 32,001 crore, IGST is Rs 73,345 crore (including Rs 37469 crore collected on import of goods) and Cess is Rs 10,502 crore (inclusive). 931 crore collected on import of goods).
“Collection in the month of May, which relates to returns for April, the first month of the financial year, has always been lower than April, which relates to returns for March, the end of the financial year. However, it is encouraging to see that even in the month of May 2022, the gross GST revenue has crossed Rs 1.40 lakh crore,” the finance ministry said in its statement.
Experts also agreed that it was normal for the GST collection in May to be lower than the GST collection in April, as the latter pertains to returns in March which is the closing of the financial year.
“The stability demonstrated by GST collections of over Rs 1.4 lakh crore in the last three months is a good indicator of the growth of the economy and correlates with other macro economic indicators including GDP numbers. MS Mani, Partner, Deloitte India, said, “Significant efforts in audit and analytics have led to a campaign against tax evaders, creating a tax compliance culture.
“The reduction in collections was expected as compared to the previous months as the collections for March, being the last month of the financial year, have always been higher than other months of the year,” Mani said.
This is only the fourth time since the inception of GST that the monthly GST collection has crossed the Rs 1.40 lakh crore mark and is the third consecutive month since March 2022. “The revenue for the month of May 2022 is 44 per cent more than the GST revenue. 97,821 crore in the same month last year. During the month, revenue from imports of goods was 43 per cent higher and revenue from domestic transactions (including import of services) was 44 per cent higher than revenue from these sources during the same month last year.
GST collections in May dropped 16 per cent on a monthly basis, while in April the GST collection touched an all-time high of Rs 1.68 lakh crore. The highest increase was recorded in Daman and Diu, Ladakh, Lakshadweep, Manipur and Goa this month.
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