Receipts of goods and services tax (GST) after adjusting for refund grew 20.4 per cent year-on-year (Y-o-Y) 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 April’s spike was expected with year-end reconciliations, consistency this month, along with 16 plus per cent Y-o-Y 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.

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       “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.

       India’s GDP in the March quarter of FY25 beat analysts’ expectations to grow at 7.4 per cent, showing a sequential uptick.

       Mani said a 25 per cent rise in import revenue suggests accelerated imports despite tariff hikes.

       However, Saurabh Agarwal, partner, EY, said the 21 per cent sequential dip in gross domestic GST collection suggested a shift in consumer spending.

       “While last month’s (April) higher collection likely included year-end business-to-business sales being pushed due to the meeting of targets, this large decrease points to some bit of change in consumer spending possibly due to global uncertainties,” Agarwal said.

       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.

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