May GST Collections

Is the Indian economy out of the woods?

The central govt mopped up Rs 1.41 tr as GST collection in May, way above the FY22 average of Rs 1.23 tr. Auto sector also reported improved sales. Do these reflect a revival in Indian economy?

In April, GST collections had touched a record high of Rs 1.68 trillion, surpassing the Rs 1.5-trillion mark for the first time

However, when compared with the same month last year, the revenues collected in May are 65 per cent higher

However, the rate of decline has come down considerably to just 9.02 per cent from 38.17 per cent in May and 71.63 per cent in April

The government had allowed a relaxed time schedule for filing of Goods and Services Tax (GST) returns

The GST structure may be in for an overhaul

Some items will also be removed from the GST exemption list that attracted some form of taxation in the pre-GST regime

The gross collection in May at Rs 1,00,289 crore is, however, lower than Rs 1,13,865 crore collected in April