GST collections jumped 44% to almost ₹1.41 lakh crore in May

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GST collections jumped 44% to almost ₹1.41 lakh crore in May

  • Indirect tax take was higher than in May 2021, but 15.9% below April’s record kitty

Gross Goods and Services Tax (GST) revenues

  • In May, GST rose 44% from a year earlier to ₹1,40,885 crore,
    • Receipts from domestic transactions and services imports rising at a matching pace, while goods imports yielded 43% higher taxes.
  • Total number of e-way bills generated in April 2022 was 7.4 crore, which is 4% lesser than 7.7 crore e-way bills generated in the month of March 2022.
  • Revenue growth from domestic transactions, including imports of services, outpaced revenues from goods imports after several months in May.
    • In April, for instance, revenues from domestic transactions rose 17%, while goods imports yielded a 30% uptick.
  • Of the total revenue in May, Central GST collections were ₹25,036 crore, State GST ₹32,001 crore, and Integrated GST ₹73,345 crore, which included ₹37,469 crore from import of goods.
  • GST Compensation Cess inflows, used to recompense States, amounted to ₹10,502 crore, including ₹931 crore from goods import. This was only marginally lower than April’s ₹10,649 crore figure.

‘Tax cushion’

  • A sustained healthy momentum of activity in the absence of another COVID breakout and major disruptions, could help central GST inflows exceed Budget estimates by ₹1.15 lakh crore and help absorb a part of the Centre’s higher subsidy bill.
  • Revenue growth was buoyant across most States.
    • As many as 20 States and Union Territories saw revenues rise faster than the 44% national average, including the major industrial States of Karnataka (60%), Maharashtra (50%) and Gujarat (46%).
    • Among southern States, Tamil Nadu’s collections grew 41%, while Andhra Pradesh, Kerala and Telangana saw growth of 47%, 80% and 33%, respectively.

Exam Track

Prelims Takeaway

  • Tax buoyancy