India's Goods and Services Tax (GST) collections dramatically rose by 44% year-on-year in the month of May 2022. The total GST collections for the month of May reached £14 billion. The contribution of domestic and overseas segments, in fact, was equal in this increase of GST.
The government said usually the first month of the financial year typically generates lower revenue. This may have to do with firms pushing sales in March to meet their targets before the end of the financial year. Due to this, the total mop-up in May 2022, based on transactions in the previous month, was 16% lower than April. The GST department made record collections of a little under £ 17 billion in April 2022.
Last year in the first quarter of India’s financial year there was a disruption in sales due to the second wave of the Covid-19 pandemic in the country. This could be one of the reasons for a higher year-on-year growth for the month of May this year.
