India’s Goods and Services Tax (GST) collections witnessed strong growth in May 2025, reaching ₹2.01 lakh crore. This marks a 16.4% year-on-year increase, compared to ₹1.72 lakh crore collected in May 2024. It’s also the second consecutive month GST revenues have surpassed the ₹2 lakh crore mark, reflecting steady economic activity and improved tax compliance.
A significant portion of this growth came from increased domestic transactions and robust import activity. Revenue from domestic sales saw a 13.7% rise, while GST collected on imports jumped by over 25%. These figures point to sustained consumer demand and an uptick in business confidence across sectors.
For the current financial year so far (April and May 2025), total GST collections stand at ₹4.38 lakh crore—up 14.3% from ₹3.83 lakh crore in the same period last year. Experts suggest this trend indicates better enforcement, formalisation of the economy, and a stable post-pandemic recovery path.
The consistent rise in collections is a positive sign for India’s fiscal health. It gives the government more room for public expenditure and signals that both consumption and supply chains are performing well. Continued momentum like this could help maintain India’s projected economic growth trajectory for FY 2025-26.
