India’s Goods and Services Tax (GST) collections for May 2025 surged to ₹2.01 lakh crore, reflecting a 16.4% year-on-year increase from ₹1.72 lakh crore collected in May 2024, according to data released by the Ministry of Finance on Sunday.
This marks the second consecutive month that GST revenues have remained above the ₹2 lakh crore threshold, a strong indicator of resilient economic activity, rising consumption, and improved tax compliance.
In April 2025, GST collections had reached a record ₹2.37 lakh crore, driven by year-end financial reconciliations and robust filings — a 13% rise over March. While April’s spike was expected due to seasonal factors, the continued strength in May suggests that economic momentum is sustaining beyond cyclical trends. The net GST revenue — after accounting for refunds — also posted healthy growth, increasing by over 20% to ₹1.73 lakh crore.
Breaking down the revenue components:
- Domestic GST collections grew by 13%, underlining improved consumption within the country.
- GST from imports rose sharply by 25.7%, pointing to stronger external demand and trade activity.
Broader Economic Signals Positive
The buoyant GST figures align with recent macroeconomic indicators showing a stable and expanding economy. On May 30, official data confirmed that India achieved its 6.5% GDP growth target for FY 2024, buoyed by a 7.4% expansion in the January–March quarter, signaling a rebound from previous slowdowns.
Private consumption, a cornerstone of India’s economic engine, has also shown signs of revival. After growing by 5.6% in FY24, consumption trends have improved further. For instance, consumer durables such as appliances and electronics witnessed 6.4% growth in April, following 6.9% growth in March.
A senior finance official noted last month that April’s record GST figures were driven not only by increased activity but also by enhanced compliance measures, suggesting structural improvements in tax administration.
