GST collection in May drops 16% from record level in April; Tax revenue collection crosses Rs 1.40 lakh crore
The Finance Ministry on Wednesday announced that the Gross GST (Goods and Services Tax) revenue for the month of May has crossed Rs 1.40 lakh crore, down 16.6 per cent as compared to April, when GST collections were at a record high. The total GST collection of the government in the month of April stood at Rs 1.68 lakh crore. The government said the total GST collection jumped 44 per cent year-on-year and crossed the Rs 1.40 lakh crore mark for the third consecutive month since March 2022.
“Collection in the month of May, which relates to returns for April, the first month of the financial year, has always been lower than April, which relates to returns for March, the end of the financial year,” the Finance Ministry said in a statement. said in the statement. However, it is encouraging to see that even in the month of May 2022, the gross GST revenue has crossed Rs 1.40 lakh crore.
“The gradual decline in May 2022 GST inflows was fully expected, as the April 2022 GST collections increased from year-end inflows. Also, higher y-o-y growth reflects the low base of the second wave,” said Aditi Nair, Chief Economist at ICRA. ICRA expects CGST inflows in FY2023 to be below BE (Budget Estimates) levels of 1.15. trillion, which will help absorb a portion of the higher subsidy bill.
In the month of May, CGST (Central Goods and Services Tax) Rs 25,036 crore, SGST (State Goods and Services Tax) Rs 32,001 crore, IGST (Integrated Goods and Services Tax) Rs 73,345 crore (which includes Rs 37,469 crore) of goods collected on imports) and a cess of Rs 10,502 crore, the government announced.
In terms of states, Karnataka, Maharashtra, Haryana and Uttar Pradesh were among the top performers in terms of GST revenue collection. Maharashtra collected the highest GST revenue of Rs 20,313 crore.
The government has fixed Rs 27,924 crore from IGST to CGST and Rs 23,123 crore to SGST. The total revenue of the Center and the states for the month of May 2022 after regular settlement is Rs 52,960 crore for CGST and Rs 55,124 crore for SGST, the statement said. On Tuesday, the government released Rs 86,912 crore to state governments, clearing all GST compensation arrears till May 31, 2022, the finance ministry announced.