GST collections rise 10% to 1.7 lakh crore in May

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NEW DELHI: Goods and companies tax collections went up 10% to Rs 1,72,739 crore in May as the expansion in assortment from home sources made up for the shortfall in the imports kitty.
Based on collections in May for transactions in April, newest information launched by the finance ministry on Saturday estimated collections from home sources to be 15.3% increased, whereas these from imports have been 4.5% decrease, indicating a slowdown in the worth of shipments into the nation, which can partly be due to a fall in commodity costs.
For the final two years, increased than budgeted GST kitty have helped the Centre shore up its general collections, and decrease fiscal deficit.

“These collections indicate the beginning of a new normal in excess of Rs 1.7 lakh crore in FY25 compared to Rs 1.6 lakh crore during FY24. This is in line with the recent GDP estimates which indicate a robust economy, which does not appear to have been impacted much either by the election season or the heat wave across the country. The resilience shown by the GST collections, without significant seasonal or event-based variations across recent months, indicates the maturity of the GST system. There will now be renewed confidence in moving ahead with the next stage of reforms in the coming months, without significant concerns on the revenue impact that such reforms could elicit,” mentioned M S Mani, associate at Deloitte India.
Within home sources, central GST noticed a 14.1% increased assortment at Rs 32,409 crore, whereas state GST kitty swelled Rs 40,265 crore.
In May, Manipur SGST collections have been 48% increased, which can even be a pointer to a return to normalcy in the state. Next up was Delhi which noticed a 46% soar.
Among the laggards have been Meghalaya (20% fall), Arunachal Pradesh (18% decline), Nagaland (14% fall) and Himachal (1% rise).
“A rise in GST collections from Jammu and Kashmir, Manipur, Puducherry and Arunachal Pradesh suggests growing consumption in these developing regions, indicating broader economic progress. Additionally, increased GST in northern states like Delhi, Uttar Pradesh etc might be due to election spending and a surge in purchases of fans, coolers and ACs caused by higher temperatures compared to last year,” mentioned Saurabh Agarwal, tax associate at EY India.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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