GST collection in May falls 16% from record-high in April; tax revenue collections cross Rs 1.40 lakh crore

The gross GST (Goods and Services Tax) revenue for the month of May crossed over Rs 1.40 lakh crore, a 16.6 per cent drop in comparison to April when GST collections were at a record high, the Ministry of Finance announced Wednesday. In the month of April, the government’s total GST collections stood at Rs 1.68 lakh crore. Year-on-year the total GST collections however jumped 44 per cent and crossed Rs 1.40 lakh crore mark for the third month at a stretch since March 2022, the government said.

“The collection in the month of May, which pertains to the returns for April, the first month of the financial year, has always been lesser than that in April, which pertains to the returns for March, the closing of the financial year,” the Ministry of Finance said in a statement. “However, it is encouraging to see that even in the month of May 2022, the gross GST revenues have crossed the Rs 1.40 lakh crore mark,” it added.

“The sequential dip in the May 2022 GST inflows was entirely expected, as the April 2022 GST collections were enhanced by year-end flows. At the same time, the high year-on-year growth reflects the low base of the second wave,” Aditi Nayar, Chief Economist at ICRA said. ICRA expects the CGST inflows in FY 2023 to exceed the BE (budget estimate) level by Rs 1.15 trillion, helping to absorb a part of the higher subsidy bill.

In the month of May, CGST (Central Goods and Services Tax) stood at Rs 25,036 crore, SGST (State Goods and Services Tax) stood at Rs 32,001 crore, IGST (Integrated Goods and Services Tax) stood at Rs 73,345 crore (which includes Rs 37, 469 crore collected on import of goods) and cess of Rs 10,502 crore, the government announced.

In terms of states, Karnataka, Maharashtra, Haryana and Uttar Pradesh were among the top performers in terms of GST revenue collections. Maharashtra collected the highest GST revenue of Rs 20,313 crore. 

The government has settled Rs 27,924 crore to CGST and Rs 23,123 crore to SGST from IGST. The total revenue of Centre and the States in the month of May 2022 after regular settlement is Rs 52,960 crore for CGST and Rs 55,124 crore for the SGST, the statement said. On Tuesday, the government released Rs 86,912 crore to the state governments, clearing all the GST compensation dues till May 31, 2022, the Ministry of Finance announced.