India’s Net GST Revenue Jumps 20.4% in May on Import Duty Surge
India recorded a sharp rise in net Goods and Services Tax (GST) revenue for May 2025, with collections growing 20.4% year-on-year to reach ₹1.73 trillion. This increase was largely driven by a surge in import tax collections and reduced refund outflows.
Import Duties Push Revenue Growth
Customs-related GST revenue saw a remarkable 72.9% year-on-year increase, contributing significantly to the month’s tax haul. At the same time, a 4% decline in refund outflows helped maintain a healthy net revenue figure. Gross GST revenue for May stood at ₹2.01 trillion, up 16.4% from the same month last year. This included a 13.7% rise in domestic collections and a 25.2% increase in taxes collected from imports.
While the figures indicate a strong performance on a year-on-year basis, there was a noticeable sequential dip. Compared to April 2025, when gross GST revenue was at an all-time high of ₹2.09 trillion, May witnessed a near 17% decline.
States Report Mixed Performance
On the state front, growth varied widely. Smaller territories such as Lakshadweep (445%), Manipur (102%), and Chandigarh (53%) reported the highest year-on-year growth in GST collections. Among industrial states, Tamil Nadu led with a 25% increase, followed by Karnataka at 20% and Maharashtra at 17%.
In contrast, Mizoram and Uttarakhand experienced contractions of 26% and 13% respectively, indicating uneven recovery and tax performance across the country.
Industry Experts Cautiously Optimistic
Tax experts noted that India has now crossed the ₹2 trillion mark in gross GST collections three times this year, reflecting strong formal sector activity. While this aligns with broader economic growth patterns, there are concerns about fluctuations in domestic consumption.
Some economists noted that the 21% sequential dip in domestic GST collections could signal a potential slowdown in consumer spending, likely influenced by global economic pressures and evolving inflation dynamics.
Nonetheless, the generation of 119 million e-way bills in April — the second-highest ever — suggests continued robustness in goods movement, which may provide support to future GST performance.
