GST revenue trends
GST collections grew 11.5% in May — the slowest uptick in six months — to cross ₹1.57 lakh crore.
Revenues from domestic transactions rising 11% and imports yielding 12% more taxes than a year earlier.
May’s revenues were the lowest in three months, and 16% below the record ₹1.87 lakh crore collected in April.
This was the 14th successive month that GST revenues exceeded ₹1.4 lakh crore and the fifth occasion that they surpassed the ₹1.5-lakh crore mark.
Overall domestic revenues grew 11% in May and 16 States recorded higher revenue growth.
Mizoram (52%), Arunachal Pradesh (47%), Delhi (25%) and Meghalaya and Madhya Pradesh, whose revenues rose 23%.
Revenues grew 11% in Odisha, Kerala, and Andhra Pradesh, 12% in Karnataka and 13% in Tamil Nadu and Telangana.
Revenues contracted sharply in Manipur due to violence, dropping 17% year-on-year, while Chhattisgarh also reported a 4% decline in revenues.
Eight States recorded slower revenue growth than the national average.
Rajasthan (up 4%) and Gujarat, Punjab, West Bengal and Jharkhand, each of whom saw a 5% rise in GST inflows in May.
A little over 51% of the month’s IGST collections came from taxes on imports of goods.
Reasons for the increasing collection
Ongoing drive against indirect tax evasion.
The GST collections are bound to increase further due to the special two-month drive for detection of fake registrations and strict action against unscrupulous elements.
Higher consumption spending through the withdrawn ₹2,000 currency notes which will remain legal tender till at least September 30, could still bump up collections.
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