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Time of India
02-06-2025
- 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.
Time of India
02-06-2025
- 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.
Economic Times
22-05-2025
- Business
- Economic Times
Private sector activity in May at 13-month high
India's private sector activity soared to a 13-month high in May, reaching 61.2, fueled by a rapid expansion in the services sector. The Composite PMI reflects strong economic performance, driven by buoyant demand and investment. Despite some firms citing price pressures and geopolitical tensions, new orders and exports experienced robust growth. Tired of too many ads? Remove Ads India's private sector activity surged to a 13-month high of 61.2 in May from 59.7 in April, driven by an acceleration in services, according to a private survey released on HSBC Flash India Composite Output Index was 60.5 in May 2024. The Composite Purchasing Managers Index (PMI) is a weighted average of comparable manufacturing and services indices. "India's flash PMI indicates another month of strong economic performance," said Pranjul Bhandari, chief India economist at increase in service sector output was the fastest in 14 months, while the manufacturing sector recorded the slowest increase in three months. Survey respondents attributed growth at the composite level to buoyant demand, investment in technology and expanded capacities. However, some firms noted that price pressures, competition and the India-Pakistan conflict negatively impacted April 2, the US announced reciprocal tariffs on various countries, imposing a 26% tariff on Indian imports. While US announced a 90-day pause until July 9, a baseline tariff of 10% remains in manufacturing sector was negatively hit across Asia due to trade uncertainties, domestic-oriented economies like India were outliers. New orders also picked up, with support from international demand. The private sector recorded the fastest increase in exports in a year, said the survey."Growth in production and new orders among manufacturing firms remains robust, despite a marginal cooling from the rates of increase observed in April," said Bhandari.
Mint
23-04-2025
- Business
- Mint
India's private sector kicks off FY26 strong: HSBC Flash PMI
New Delhi: India's private sector kicked off FY26 on a strong note, buoyed by robust global demand for goods and services, according to HSBC's flash Purchasing Managers' Index (PMI) survey released Wednesday. Export orders surged at their fastest pace since the survey began in September 2014, propelling faster growth in both output and employment. The HSBC Flash India Composite Output Index—which tracks activity across manufacturing and services—is expected to rise to 60 in April, up from 59.5 in March. A reading above 50 indicates expansion; the index has now remained in growth territory for over three years. Services activity is also set to accelerate, with the HSBC Flash India Services PMI Business Activity Index rising to 59.1 in April from 58.5 in the previous month. Manufacturing, meanwhile, remains resilient. The Flash India Manufacturing PMI Output Index is seen inching up to 61.9 in April from 61.7 in March, while the broader Manufacturing PMI is expected to rise to 58.4 from 58.1. Final PMI data for April will be released early next month. "New export orders accelerated sharply, likely buoyed by the 90-day pause in implementation of tariffs. As a result, output and employment grew, for both, manufacturers and service providers," said Pranjul Bhandari, chief India economist at HSBC. "Cost inflation was in line with March levels, but prices charged rose a tad faster, leading to improved margins," Bhandari added. The flash PMI data, compiled by S&P Global, is based on responses from around 400 manufacturers and 400 service providers. In April, firms reported a record jump in export orders, with demand strengthening across Africa, Asia, Europe, West Asia, and the Americas. Goods producers led the charge, recording their fastest pace of growth in more than 15 years. "Aggregate sales increased at a sharp pace that was the fastest since August 2024. Once again, manufacturing companies registered a quicker upturn in new business than their services counterparts," the survey said. 'There were quicker increases in backlogs across both the manufacturing and services economies.' India's push to become a $10 trillion economy over the next decade is being powered by manufacturing, especially in sectors such as semiconductors, electronics, electric vehicles, renewables, and defence. To support this ambition, the government has ramped up capital spending on infrastructure, job creation, and industrial development. The latest HSBC flash PMI survey showed that companies scaled up input purchases to rebuild stocks and safeguard against shortages. "Holdings of raw materials and semi-finished items rose at the fastest pace in eight months, underpinned by shorter lead times for inputs, but postproduction inventories dropped to the greatest extent in nearly three-and-a-half years as orders were often fulfilled from warehouses," it added. First Published: 23 Apr 2025, 01:14 PM IST
