A FAVOURABLE HEADWAY

India's economy exhibits a steadfast and dynamic momentum, propelled by robust and noteworthy developments within the country and outside it too with the exception of some setbacks

India’s economy has showcased a resolute and encouraging momentum, characterized by a formidable upsurge in GST collections, an impressive 7.2% expansion in FY23 GDP, the astute acquisition of discounted oil imports amid the backdrop of the Ukraine conflict, a substantial surge in seafood exports, a projected inflation rate of 5.1% for FY24, and the diligent oversight of inflation and growth prospects by the unwavering Monetary Policy Committee.

GST Collection Expands 12% y-o-y in May

The Goods and Services Tax (GST) collection in May this year climbed 12% year-on-year (y-o-y) to ₹1.57 lakh crore, marking the fifth time the collection has breached the ₹1.5 lakh crore-mark since its inception in July ’17.

The May GST collection is slightly higher than expected, marking the 14th consecutive month that the monthly collection has surpassed the ₹1.4 lakh crore-mark. In May of the previous year, the GST revenue stood at ₹1.41 lakh crore.

Given the steady collection trend in the last nearly one-and-a-half years, there is a high possibility of GST mop-ups ranging between ₹ 1.55 lakh crore and ₹ 1.65 lakh crore over the next few months.

In May, the Central GST (CGST) stood at ₹ 28,411 crore, while State GST (SGST) and Integrated GST (IGST) amounted to ₹35,828 crore and ₹81,363 crore, respectively. The cess collected was ₹11,489 crore, which includes ₹1,057 crore collected on the import of goods.

“During May, revenue from import of goods was 12% higher and revenue from domestic transactions (including import of services) was 11% higher than revenue from these sources during the same month last year,” the Finance Ministry said.

In terms of volume, Maharashtra, Gujarat, Karnataka, and Tamil Nadu registered the highest collections.

India Clocks GDP Growth Of 7.2% In FY23