New Delhi, June 1, 2025 – The Indian government has begun June on a high note with encouraging economic news: Goods and Services Tax (GST) collections for May 2025 have once again crossed the ₹2 lakh crore mark. This milestone, now becoming more frequent, reflects a strong momentum in consumption, compliance, and digital integration in the tax ecosystem.
According to data released by the Ministry of Finance, the total gross GST revenue collected in May stood at ₹2.01 lakh crore. This includes ₹36,700 crore as Central GST (CGST), ₹45,000 crore as State GST (SGST), ₹1.04 lakh crore as Integrated GST (IGST) – including ₹41,000 crore collected on imports – and ₹15,300 crore as cess.
Year-on-year growth: Compared to May 2024, the GST collection has seen a 12% increase, indicating a resilient economy despite global uncertainties.
Sectoral recovery: Manufacturing and services contributed significantly to the surge, while states like Maharashtra, Tamil Nadu, and Karnataka showed steady revenue growth.
State-wise variation: Though overall figures are robust, some states have shown mixed trends due to regional disparities in economic activity and tax compliance.
Finance Ministry officials attribute the continued strong performance to the increasing formalization of the economy, effective anti-evasion measures, and the success of GSTN (Goods and Services Tax Network) infrastructure in simplifying filing and reducing leakages.
This is the fourth time in the last six months that the ₹2 lakh crore mark has been breached, suggesting that India’s tax-to-GDP ratio is steadily improving — a positive sign for fiscal health and public expenditure planning.
Economists view this as a sign of stability and a good foundation for future reforms, including potential rationalization of GST slabs. The sustained collection also provides greater headroom for government spending on infrastructure, welfare schemes, and capital investments.
The data reaffirms India’s growing digital economy and the effectiveness of the GST regime, which, despite early challenges, now stands as one of the pillars of India’s fiscal architecture.
