While the mop-up in May, based on transactions in the previous month, was 16% lower than the record collection of Rs 1.7 lakh crore in April, the government said the first month generally generates less revenue. Companies looking to increase sales in March may have to do the same to meet their targets before the end of the financial year.
One of the reasons for higher growth in May is the disruption in sales during the first quarter of 2021-22 due to the second wave of the COVID-19 pandemic.
“This is only for the fourth time that the monthly GST collection since the inception of GST has crossed the 1.4 lakh crore mark and for the third consecutive month since March 2022,” an official statement said.
It also said that compared to March 2022, the number of e-way bills generated in April fell by 4% to 7.4 crore, indicating less shipment of goods on a sequential basis.
“The stability demonstrated by the GST collections in the last three months is over Rs 1.4 lakh crore which is a good indicator of the growth of the economy and correlates with other macro-economic indicators including GDP numbers. Significant efforts in audit and analytics have also led to a campaign against tax evaders, creating a tax compliance culture. ms moneya partner in a consulting firm Deloitte India,
Even going forward, the collections are expected to remain strong, said experts. “Given the trends for April-May 2022, and anticipation of a continued healthy pace of activity in the absence of another wave covid And major disruptions, we expect CGST inflows to exceed BE level by over Rs 1.15 lakh crore in FY2023, which will help absorb a portion of the higher subsidy bill,” said Aditi Nair, Chief Economist, ICRA he said.
smaller states, such as Arunachal, Manipur and Goa and Union Territories like Jammu and Kashmir, Ladakh, registered high growth, most of which reported more than double the state GST collection during May. Sikkim, Jharkhand and Odisha were among the states that reported a slow pace of expansion.