India's Goods and Services Tax (GST) collection slipped to Rs 1.94 lakh crore in May 2025, down from the record Rs 2.01 lakh crore collected in April 2025. This represents a decline of approximately 4% month-on-month, according to data released by the Ministry of Finance on Sunday.
Breakdown of May GST Figures
The total GST revenue of Rs 1,94,000 crore includes Central GST (CGST) of Rs 35,000 crore, State GST (SGST) of Rs 43,000 crore, Integrated GST (IGST) of Rs 1,00,000 crore (including Rs 47,000 crore on imports), and cess of Rs 16,000 crore. The government settled Rs 44,000 crore to CGST and Rs 37,000 crore to SGST from IGST as regular settlement.
Comparison with Previous Months
In April 2025, the gross GST collection had reached an all-time high of Rs 2.01 lakh crore, driven by strong economic activity and improved compliance. The May figure, while lower, is still the second-highest collection ever recorded. In May 2024, the collection stood at Rs 1.73 lakh crore, indicating a year-on-year growth of 12%.
Reasons for the Decline
Experts attribute the dip to seasonal factors, including a slowdown in economic activity after the end of the financial year and the impact of heatwaves in several states. Additionally, the number of returns filed in May was slightly lower compared to April, affecting tax collections. However, the overall trend remains positive, with average monthly collections in the first two months of FY26 exceeding Rs 1.97 lakh crore.
State-wise Performance
Among states, Maharashtra contributed the highest at Rs 28,000 crore, followed by Karnataka (Rs 13,000 crore), Gujarat (Rs 11,000 crore), and Tamil Nadu (Rs 10,000 crore). Some smaller states reported lower collections due to seasonal variations.
Outlook for FY26
The government remains optimistic about achieving the budgeted GST target for FY26, which is set at Rs 1.83 lakh crore per month. With the average of the first two months at Rs 1.97 lakh crore, the target appears achievable. Improved tax compliance, anti-evasion measures, and economic growth are expected to sustain collections in the coming months.
