New Delhi, June 4: India’s Goods and Services Tax (GST) collections for May 2025 reached a record high of ₹2.02 lakh crore (approx. $24.2 billion), reflecting strong consumption and business activity across sectors. The significant increase comes just days ahead of the Reserve Bank of India’s upcoming monetary policy review.
According to official data released by the Ministry of Finance, the revenue in May marks a 12% year-on-year growth, driven by increased domestic transactions and a sustained crackdown on tax evasion.
📊 Key GST Collection Highlights – May 2025:
- Total Revenue: ₹2.02 lakh crore (~$24.2 billion)
- Growth: 12% compared to May 2024
- IGST Collection: ₹55,000 crore
- CGST + SGST + Cess Components: Significant rise across all segments
This is the second time in FY25 that GST collections have crossed the ₹2 lakh crore mark, reinforcing optimism about India’s economic momentum.
💬 What Experts Say Ahead of RBI Review:
Economists believe this strong revenue performance indicates resilient consumption demand and higher formalization of the economy, possibly reducing pressure on the RBI to cut interest rates immediately.
The rise has been attributed to increased domestic consumption, improved compliance measures, and more effective tracking of inter-state goods movement. Revenues from domestic transactions rose by 13.7 per cent to Rs 1.50 lakh crore, while GST collected on imports surged 25.2 per cent to Rs 51,266 crore.
“Higher GST mop-up is a positive signal ahead of the RBI’s monetary policy decision. It reflects economic strength and a healthy tax base,” said a senior economist from a leading financial firm.
The Reserve Bank of India is set to announce its Monetary Policy Committee (MPC) decision on Friday, June 7, where it is widely expected to maintain status quo on key interest rates.