Data released by the Finance Ministry showed GST collections rose 44 per cent year-on-year to Rs 1,40,885 crore in May (for sales in April), reflecting improved economic activity, enforcement actions and higher inflation, data released by the Finance Ministry showed.
GST collections had recorded the highest-ever level of Rs 1.68 lakh crore in the previous month for year-end sales. This is the fourth time that monthly GST collections have crossed the Rs 1.40 lakh crore mark since the inception of GST and the third month in a row since March 2022. GST collections in May 2021 stood at Rs. 97,821 crore.
The broader trend
"The collection in the month of May, which pertains to the returns for April, the first month of the financial year, has always been less than that in April, which pertains to the returns for March, the closing of the financial year. 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, "the Finance Ministry statement said.
The total number of e-way bills generated in April 2022 was at 7.4 crore, 4 per cent less than the 7.7 crore e-way bills generated in March 2022, it said.
Revenues from the import of goods were 43 per cent higher and the revenues from domestic transactions (including the import of services) were 44 per cent higher than the revenues from these sources during the same month last year.
Experts said actions against tax evaders including efforts in audits and analytics helped push the growth in GST collections.
MS Mani, Partner, Deloitte India said, "The stability demonstrated by GST collections exceeding Rs 1.4 lakh crore over the past three months is a good indicator of the growth of the economy and ties in with the other macro economic indicators including the GDP numbers.
"Significant efforts in audits and analytics have also led to a drive against tax evaders, inculcating a tax compliance culture. The reduction in collections compared with the previous months was expected as the collections for March, being the last month of the fiscal year, have always been more than other months of the year."