Record GST Collection Driven by States’ Strong Contribution, Surpasses ₹2.01 Lakh Crore with 16.4% Growth
New Delhi: For the third time, India has recorded its highest Goods and Services Tax (GST) collection. In May, GST revenue rose by 16.4% to over ₹2.01 lakh crore. This follows a record-breaking collection of ₹2.37 lakh crore in April — the highest ever since the GST regime was implemented.
In the April-May period of the financial year 2025–26, the total GST revenue stood at ₹4,37,767 crore — 14.3% higher than ₹3,83,006 crore collected during the same period last year. For the entire fiscal year 2024–25, the revenue reached ₹22 lakh crore, up 9.4% compared to the previous year’s ₹20.18 lakh crore.
Significant Growth in States’ GST Revenue
M.S. Mani, a partner at Deloitte India, noted that states are showing varied levels of growth in GST collections. This highlights the need for in-depth analysis of key sectors within each state.
Major states like Maharashtra, West Bengal, Karnataka, and Tamil Nadu witnessed a 17% to 25% rise in collections. On the other hand, states such as Gujarat, Andhra Pradesh, and Telangana posted more moderate growth, around 6%. States like Madhya Pradesh, Haryana, Punjab, and Rajasthan saw an average increase of 10%.
Mani pointed out that the average national growth does not reflect evenly across states, likely due to regional or seasonal factors — necessitating detailed, data-driven insights.
Third Highest GST Collection on Record
According to data released Sunday, this is the third instance since the GST’s implementation in 2017 that collections have crossed ₹2 lakh crore. April 2024 saw the highest-ever GST collection of ₹2.10 lakh crore, followed by consistently strong performance in subsequent months. Refunds in May, however, dropped by 4% to ₹27,210 crore.
Over 16% Year-on-Year Growth
In May 2024, GST revenue stood at ₹1,72,739 crore. In comparison, May 2025 registered a 16.4% jump. Domestic transactions contributed approximately ₹1.50 lakh crore — a 13.7% rise, while GST from imports surged 25.2% to ₹51,266 crore.
Breakdown of May GST revenue:
- Central GST: ₹35,434 crore
- State GST: ₹43,902 crore
- Integrated GST (IGST): ₹1.09 lakh crore
- Compensation cess: ₹12,879 crore
Monthly GST Collection (₹ Lakh Crore):
- May 2025: 2.01
- April 2025: 2.37
- March 2025: 1.96
- February 2025: 1.83
- January 2025: 1.95
- December 2024: 1.77
Indicators of Economic Strength
These GST figures indicate robust momentum in India’s economy. The data reflects strong domestic consumption, demand, and import activity. It serves as a positive signal for the country’s business environment and economic reforms, especially amid global uncertainties.
Reasons Behind Rising GST Collection:
- Strong domestic demand and consumption
- Growth in services and manufacturing sectors
- Increased use of e-invoicing
- Improved regulatory compliance
- Rise in the number of taxpayers
- Greater digitization and transparency
