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Time of India
5 days ago
- Business
- Time of India
May GST Mopup Shows FY26 Off to a Flying Start
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Epaper Tired of too many ads? Remove Ads Goods and services tax collections surged 16.4% in May to ₹2.01 lakh crore from a year earlier, signaling robust demand at the start of the fiscal year after a strong close to FY25, data released on Sunday high-frequency monthly data also showed strong economic momentum in May. Unified Payments Interface transactions rose 33% year-on-year in the month to 17.8 billion transactions. Mahindra & Mahindra, the country's second-largest automaker, reported 21% higher sales in May, though overall industry sales are likely to be flat on the high base of last economy grew at a better-than-expected 7.4% in the March quarter from a year ago, as per data released May 30. Previously released numbers showed HSBC Flash India Composite Output Index for May at 61.2 against 59.7 in April, indicating expansion in private sector activity.'The (GST collection) figures reported for May 2025, which relate to transactions in the first month of FY26, at ₹2.01 lakh crore would provide significant fiscal headroom for the government,' said MS Mani, partner, indirect taxes, Deloitte India. 'These figures are also in line with the recent GDP growth estimates, which indicate a robust consumption pattern across months.'This is the second time in a row GST has exceeded ₹2 lakh crore. The average monthly gross GST collection in FY25 was ₹1.84 lakh be sure, the May figure is down from the high of ₹2.38 lakh crore in April, but analysts said collections in that month are traditionally higher.'While last month's spike was expected with year-end reconciliations, the consistency this month along with a 16% plus year-on-year growth points to strong underlying momentum and a recovery that is clearly taking hold,' said Abhishek Jain, indirect tax head and partner, revenues from imports are 25% higher despite tariff headwinds, indicating strength in the domestic GST collections stood at ₹1.49 lakh crore, up 13.7%. After accounting for refunds, net GST revenue for May was ₹1.73 lakh crore, 20% up from last export refunds were down 36.25%.'This suggests that April's increased exports were primarily on account of companies building their stocks' owing to the tariff threat, said Saurabh Agarwal, tax partner, the large states, Maharashtra, West Bengal, Karnataka and Tamil Nadu reported a 17-25% rise while Gujarat and Telangana clocked a 4-6% increase.'The wide variations in the growth of GST collections across states require a thorough analysis across the sectors that are important in each state,' Mani also said consistent robust GST collections make a case for rate rationalisation.'If the growth continues in this range for next couple of months, it might provide the cushion for the government to look at rate rationalisation on which a lot of work has already been done,' said Pratik Jain, partner, May, gross central GST revenue stood at ₹35,434 crore, state GST revenue at ₹43,902 crore and integrated GST at ₹1.09 lakh crore. Revenue from cess was ₹12,879 crore.
Economic Times
5 days ago
- Business
- Economic Times
May GST mopup up by 16.4%; shows FY26 off to a flying start
India's GST collections soared 16.4% to ₹2.01 lakh crore in May, signaling strong economic momentum at the start of FY26. This robust growth, supported by increased UPI transactions and auto sales, provides significant fiscal headroom for the government. Experts suggest that continued strong GST performance could pave the way for rate rationalization. Tired of too many ads? Remove Ads Revenues from imports up 25% Tired of too many ads? Remove Ads Goods and services tax collections surged 16.4% in May to ₹2.01 lakh crore from a year earlier, signaling robust demand at the start of the fiscal year after a strong close to FY25, data released on Sunday high-frequency monthly data also showed strong economic momentum in May. Unified Payments Interface transactions rose 33% year-on-year in the month to 17.8 billion transactions. Mahindra & Mahindra, the country's second-largest automaker, reported 21% higher sales in May, though overall industry sales are likely to be flat on the high base of last economy grew at a better-than-expected 7.4% in the March quarter from a year ago, as per data released May 30. Previously released numbers showed HSBC Flash India Composite Output Index for May at 61.2 against 59.7 in April, indicating expansion in private sector activity.'The (GST collection) figures reported for May 2025, which relate to transactions in the first month of FY26, at ₹2.01 lakh crore would provide significant fiscal headroom for the government,' said MS Mani, partner, indirect taxes, Deloitte India. 'These figures are also in line with the recent GDP growth estimates, which indicate a robust consumption pattern across months.'This is the second time in a row GST has exceeded ₹2 lakh crore. The average monthly gross GST collection in FY25 was ₹1.84 lakh be sure, the May figure is down from the high of ₹2.38 lakh crore in April, but analysts said collections in that month are traditionally higher. 'While last month's spike was expected with year-end reconciliations, the consistency this month along with a 16% plus year-on-year growth points to strong underlying momentum and a recovery that is clearly taking hold,' said Abhishek Jain, indirect tax head and partner, revenues from imports are 25% higher despite tariff headwinds, indicating strength in the domestic GST collections stood at ₹1.49 lakh crore, up 13.7%. After accounting for refunds, net GST revenue for May was ₹1.73 lakh crore, 20% up from last export refunds were down 36.25%. 'This suggests that April's increased exports were primarily on account of companies building their stocks owing to the tariff threat,' said Saurabh Agarwal, tax partner, the large states, Maharashtra, West Bengal, Karnataka and Tamil Nadu reported a 17–25% rise while Gujarat and Telangana clocked a 4–6% increase.'The wide variations in the growth of GST collections across states require a thorough analysis across the sectors that are important in each state,' Mani also said consistent robust GST collections make a case for rate rationalisation. 'If the growth continues in this range for next couple of months, it might provide the cushion for the government to look at rate rationalisation on which a lot of work has already been done,' said Pratik Jain, partner, May, gross central GST revenue stood at ₹35,434 crore, state GST revenue at ₹43,902 crore and integrated GST at ₹1.09 lakh crore. Revenue from cess was ₹12,879 crore.
Time of India
5 days ago
- Business
- Time of India
May GST mopup up by 16.4%; shows FY26 off to a flying start
Revenues from imports up 25% Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Goods and services tax collections surged 16.4% in May to ₹2.01 lakh crore from a year earlier, signaling robust demand at the start of the fiscal year after a strong close to FY25, data released on Sunday high-frequency monthly data also showed strong economic momentum in May. Unified Payments Interface transactions rose 33% year-on-year in the month to 17.8 billion transactions. Mahindra & Mahindra, the country's second-largest automaker, reported 21% higher sales in May, though overall industry sales are likely to be flat on the high base of last economy grew at a better-than-expected 7.4% in the March quarter from a year ago, as per data released May 30. Previously released numbers showed HSBC Flash India Composite Output Index for May at 61.2 against 59.7 in April, indicating expansion in private sector activity.'The (GST collection) figures reported for May 2025, which relate to transactions in the first month of FY26, at ₹2.01 lakh crore would provide significant fiscal headroom for the government,' said MS Mani, partner, indirect taxes, Deloitte India. 'These figures are also in line with the recent GDP growth estimates, which indicate a robust consumption pattern across months.'This is the second time in a row GST has exceeded ₹2 lakh crore. The average monthly gross GST collection in FY25 was ₹1.84 lakh be sure, the May figure is down from the high of ₹2.38 lakh crore in April, but analysts said collections in that month are traditionally higher. 'While last month's spike was expected with year-end reconciliations, the consistency this month along with a 16% plus year-on-year growth points to strong underlying momentum and a recovery that is clearly taking hold,' said Abhishek Jain, indirect tax head and partner, revenues from imports are 25% higher despite tariff headwinds, indicating strength in the domestic GST collections stood at ₹1.49 lakh crore, up 13.7%. After accounting for refunds, net GST revenue for May was ₹1.73 lakh crore, 20% up from last export refunds were down 36.25%. 'This suggests that April's increased exports were primarily on account of companies building their stocks owing to the tariff threat,' said Saurabh Agarwal, tax partner, the large states, Maharashtra, West Bengal, Karnataka and Tamil Nadu reported a 17–25% rise while Gujarat and Telangana clocked a 4–6% increase.'The wide variations in the growth of GST collections across states require a thorough analysis across the sectors that are important in each state,' Mani also said consistent robust GST collections make a case for rate rationalisation. 'If the growth continues in this range for next couple of months, it might provide the cushion for the government to look at rate rationalisation on which a lot of work has already been done,' said Pratik Jain, partner, May, gross central GST revenue stood at ₹35,434 crore, state GST revenue at ₹43,902 crore and integrated GST at ₹1.09 lakh crore. Revenue from cess was ₹12,879 crore.
Indian Express
5 days ago
- Business
- Indian Express
Gross GST collections in May rise 16.4% YoY to Rs 2.01 lakh crore
Gross Goods and Services Tax (GST) collections rose 16.4 per cent year-on-year to Rs 2.01 lakh crore in May (for sales in April), data released by the government on Sunday showed. The GST collections in May were lower than last month's record-high level of Rs 2.37 lakh crore even as the growth rate was higher at 16.4 per cent in May as against 12.6 per cent growth seen in April. While April collections had gained from year-end sales, GST collections in May slowed down from the domestic segment. GST collections from imports grew 25.2 per cent year-on-year to Rs 51,266 crore in May. GST collections from imports were Rs 46,913 crore in April. On the domestic front, GST collections grew 13.7 per cent to Rs 1.50 lakh crore in May, but were lower than Rs 1.90 lakh crore in April. On a net basis, GST collections increased 20.4 per cent to Rs 1.74 lakh crore, the data showed. Experts said a 16 per cent plus year-on-year growth implies economic recovery is holding up. Abhishek Jain, indirect tax head and partner, KPMG said, 'While last month's spike was expected with year-end reconciliations, the consistency this month along with a 16 plus per cent year-on-year growth points to strong underlying momentum and a recovery that's clearly taking hold.' Some experts pointed out a lower GST collection from the domestic sales in May (for sales in April) as against April (for year-end sales in March). 'GST collections are about what we expected, showing a 15 per cent drop from last month. However, domestic GST collections fell by nearly 21 per cent compared to last month, suggesting a shift in how much consumers are spending. While last month's higher collections likely included year-end business-to-business sales pushed due to targets, this large decrease points to some bit of change in consumer spending possibly due to global uncertainties. Also, export refunds are down significantly, by 36.25 per cent, which suggests that the last month's increased exports were primarily on account of companies building their stock at US level due to imposition of tariff,' Saurabh Agarwal, tax partner, EY India said. Total refunds stood at Rs 27,210 crore in May, down 4 per cent YoY. While domestic refunds grew 53.7 per cent YoY to Rs 18,314 crore in May, refunds for imports were down 45.9 per cent to Rs 8,896 crore. In April, domestic refunds had risen 22.4 per cent YoY to Rs 13,386 crore, while refunds on imports had increased 86.1 per cent YoY to Rs 13,955 crore. State-wise data for October showed that out of 38 states/Union territories, 20 states/UTs recorded higher growth in gross GST collections than the national average of 16.4 per cent growth rate. In absolute terms, Maharashtra was at the top with collection of Rs 31,530 crore (17 per cent growth), followed by Karnataka with collection of Rs 14,299 crore (20 per cent growth), Tamil Nadu with Rs 12,230 crore (25 per cent growth), Gujarat with collection of Rs 11,737 crore (4 per cent growth), and Delhi with Rs 10,366 crore collection (38 per cent growth). States/UTs which recorded a contraction in GST collections in May included: Andhra Pradesh at Rs 3,803 crore (-2 per cent), Uttarakhand at Rs 1,605 crore (-13 per cent), Dadra and Nagar Haveli and Daman & Diu at Rs 351 crore (-6 per cent), and Mizoram at Rs 29 crore (-26 per cent). 'The wide variations in the growth of GST collections across states require a thorough analysis across the sectors that are important in each state. While large states like Maharashtra, West Bengal, Karnataka and Tamil Nadu have reported collection increases of 17 per cent to 25 per cent, similar large states like Gujarat, AP and Telangana have shown increases of only -2 per cent to 6 per cent t. Some states like MP, Haryana, Punjab and Rajasthan have shown a median increase of 10 per cent. Hence, the average growth across the country does not appear to be uniformly reflected across states possibly due to sectoral or seasonal factors which require a deeper data based analysis,' MS Mani, partner, indirect taxes, Deloitte India said. The gross Central GST (CGST) — the tax levied on intra-state supplies of goods and services by the Centre — collections stood at Rs 35,434 crore, State GST (SGST) — the tax levied on intra-state supplies of goods and services by the states — collections were Rs 43,902 crore, while Integrated GST (IGST) — the tax levied on all inter-state supplies of goods and services — collections stood at Rs 1.09 lakh crore and cess at Rs 12,879 crore during the month. The gross Central GST (CGST) — the tax levied on intra-state supplies of goods and services by the Centre — collections stood at Rs 35,434 crore, State GST (SGST) — the tax levied on intra-state supplies of goods and services by the states — collections were Rs 43,902 crore, while Integrated GST (IGST) — the tax levied on all inter-state supplies of goods and services — collections stood at Rs 1.09 lakh crore and cess at Rs 12,879 crore during the month. Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports on the macro economy and fiscal policy, with a special focus on economic science, labour trends, taxation and revenue metrics. With over 13 years of newsroom experience, she has also reported in detail on macroeconomic data such as trends and policy actions related to inflation, GDP growth and fiscal arithmetic. Interested in the history of her homeland, Kashmir, she likes to read about its culture and tradition in her spare time, along with trying to map the journeys of displacement from there. ... Read More
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Business Standard
5 days ago
- Business
- Business Standard
Net GST revenue grows 20.4% to Rs 1.7 trn on import taxes: Govt data
Receipts of goods and services tax (GST) after adjusting for refund grew 20.4 per cent year-on-year to ₹1.73 trillion in May on the back of a sharp increase of 72.9 per cent in Customs-related revenue and a decline of 4 per cent in refund outgo, according to the data released by the finance ministry. Sequentially, there has been a nearly 17 per cent drop over April's net GST collection, which stood at ₹2.09 trillion. Gross GST collection in May rose 16.4 per cent to ₹2.01 trillion, with the yield from domestic sources rising 13.7 per cent and import-related revenue going up a sharper 25.2 per cent. Gross GST collection had reached an all-time high of ₹2.4 trillion in April, registering a growth rate of 12.6 per cent. Abhishek Jain, head, indirect tax, and partner, KPMG, said it was encouraging to see gross GST collection again crossing ₹2 trillion in May. 'While last month's (April) spike was expected with year-end reconciliations, consistency this month, along with 16 plus per cent year-on-year growth, points to strong underlying momentum and a recovery that's clearly taking hold,' he added. The generation of eway bills in April had increased to the second-highest level of 119 million, which is reflected in the May GST data, with a year-on-year growth rate of more than 20 per cent for the second consecutive month. 'This (eway bill) robust momentum in goods movement signals sound business activities and is also indicative of stronger GST collection in May 2025,' the Monthly Economic Review, released by the finance ministry last week, had said. M S Mani, partner, Deloitte India, said compared to the FY25 average gross GST collection of ₹1.84 trillion, the ₹2.01 trillion for May, which relates to transactions in the first month of FY26, would provide significant fiscal headroom for the government. 'These figures are also in line with the recent GDP (gross domestic product) growth estimates, which indicate a robust consumption pattern across months,' he added. The state-wise data shows smaller states/Union Territories like Manipur (102 per cent), Lakshadweep (445 per cent), and Chandigarh (53 per cent) posted sharp growth in May on an annual basis, while large consumption and industrial states such as Maharashtra (17 per cent), Tamil Nadu (25 per cent), and Karnataka (20 per cent) also reported robust gains. Mizoram and Uttarakhand rang in declines of 26 per cent and 13 per cent, respectively. '...The average growth across the country doesn't appear to be uniformly reflected across states, possibly due to sectoral or seasonal factors, which require a deeper data based analysis,' Mani added.
