This marks the second month in a row that GST revenues have stayed above the Rs 2 lakh crore mark, indicating healthy economic activity and steady consumption growth.
In April, GST collections had touched an all-time high of Rs 2.37 lakh crore, which was a 13 per cent jump from March.
That spike was largely due to year-end financial filings and reconciliations. However, the strong numbers in May suggest that the momentum is continuing beyond seasonal factors.
Net GST revenue — which includes refunds — also grew significantly, rising by over 20 per cent to Rs 1.73 lakh crore.
Domestic GST collections increased by 13 per cent, while revenue from imports rose sharply by 25.7 per cent.
Meanwhile, India’s overall economy is also showing signs of stable growth. Data released on May 30 showed that the country achieved its growth target of 6.5 per cent for the financial year 2024.
The economy expanded by 7.4 per cent in the January to March quarter, bouncing back strongly from earlier slowdowns.
Consumption, a key driver of growth, also improved over the year. After growing by 5.6 per cent in the previous financial year, consumption has picked up again.
In April, consumer durable goods, such as appliances and electronics, grew by 6.4 per cent, slightly lower than the 6.9 per cent growth in March.
