GST Collections Hold Strong in May, Cross Rs 2 Lakh Crore for Second Month in a Row

India’s Goods and Services Tax (GST) collections remained robust in May 2025, crossing the ₹2 lakh crore mark for the second month in a row. The total mop-up stood at ₹2.01 lakh crore, making it only the third instance in GST history that monthly collections have breached this milestone.

The May figures, reflecting economic activity from April, represent a sharp 16% increase compared to the same month last year. Although lower than April’s all-time high—typically boosted by year-end filings—the May collections sustained momentum, underscoring resilient economic activity.

One of the key drivers behind the strong performance was a surge in import-related GST, which saw over 25% growth year-on-year, significantly outpacing the 14% rise in domestic GST. This trend aligns with April’s record-high E-Way Bill generation of 11.93 crore, a 23% increase from the previous year, indicating buoyant movement of goods.

Tax experts attribute the import surge partly to shifting global trade dynamics. “This, coupled with the fact that export refunds are not growing correspondingly, reflects that import growth far outstrips export growth,” said Vivek Jalan, Partner at Tax Connect. “This may be a result of ‘Trump 2.0’—countries dumping their goods in India as they sell less in the USA.”

Saurabh Agarwal, Tax Partner at EY India, noted that while April's collections were likely boosted by year-end B2B transactions, May’s marginal dip may reflect changes in consumer demand amid global uncertainty. However, he highlighted positive signs in the rising collections across several northeastern states and Union Territories, including Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Tripura, Meghalaya, Assam, Lakshadweep, and the Andaman & Nicobar Islands—indicating broader regional development.

Harsh Shah, Partner at Economic Laws Practice, pointed out that the sustained uptick in collections could bolster the government’s efforts toward GST rate rationalisation. He also observed significant variation in state-wise collections, with Maharashtra and Karnataka showing stronger growth compared to Telangana and Punjab. Shah attributed this disparity to possible sectoral or seasonal influences, warranting a more granular analysis.

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