GST Collections Surge 16.4% in May 2025, Cross ₹2.01 Lakh Crore Mark
📅 June 1, 2025 | New Delhi
India's gross Goods and Services Tax (GST) revenue touched a record high of ₹2.01 lakh crore in May 2025, marking a 16.4% year-on-year (YoY) increase. This growth reinforces the momentum in domestic consumption and reflects improved compliance and economic recovery across sectors.
According to data released by the Finance Ministry, this is only the second time GST collections have crossed the ₹2 lakh crore mark, following the ₹2.10 lakh crore reported in April 2024.
Breakdown of GST Collections – May 2025
CGST (Central GST): ₹36,450 crore
SGST (State GST): ₹37,560 crore
IGST (Integrated GST): ₹1,06,050 crore (includes ₹47,000 crore collected on imports)
Cess: ₹20,940 crore (includes ₹980 crore collected on imports)
Year-on-Year Growth Comparison
| Month | GST Revenue (₹ Crore) | YoY Growth |
|---|---|---|
| May 2024 | ₹1.73 lakh crore | — |
| May 2025 | ₹2.01 lakh crore | 16.4% |
Key Factors Behind the GST Surge
Strong Domestic Demand: Retail and services sectors saw higher turnover.
Compliance Improvements: E-invoicing and AI-driven audits enhanced reporting accuracy.
Economic Rebound: Improved performance in sectors like manufacturing, hospitality, and e-commerce.
Customs Duty and Import GST: Significant increase in imports contributed to IGST collections.
Expert Insights
“The consistent growth in GST collections signals robust economic activity and effectiveness in tax administration reforms. We expect this trend to continue if macroeconomic conditions remain stable,” said a senior economist at CRISIL.
Implications for the Indian Economy
💰 Stronger Fiscal Position: Boosts government revenue to support infrastructure and welfare schemes.
📈 Positive Market Sentiment: Encourages investor confidence in economic fundamentals.
🏛️ Policy Leeway: Offers the government more room to handle fiscal deficits and capex plans.
FAQs: GST Collection in May 2025
Q1. What is the GST collection for May 2025?
A: ₹2.01 lakh crore — a 16.4% increase compared to May 2024.
Q2. What are the main components of GST revenue?
A: Central GST (CGST), State GST (SGST), Integrated GST (IGST), and Cess.
Q3. Why did GST collections rise this month?
A: Due to stronger domestic demand, higher imports, and improved tax compliance mechanisms.
Q4. Is this the highest GST collection ever?
A: No. The highest was ₹2.10 lakh crore in April 2024, but May 2025 marks the second-highest and a record for the month of May.
Q5. How does higher GST revenue benefit the economy?
A: It strengthens government finances, enabling more infrastructure spending, welfare schemes, and fiscal stability.
Conclusion
The ₹2.01 lakh crore GST revenue figure for May 2025 reflects strong economic fundamentals, effective policy implementation, and enhanced compliance. As India continues to push for fiscal growth, such surges in tax collections will play a pivotal role in shaping future policy and investment strategies.
Reported by Benny on June 1, 2025.