The Goods and Services Tax (GST) revenue collection has remained robust, crossing the ₹2 lakh crore mark for the second consecutive month, underscoring strong economic activity and consistent consumption growth across various sectors.
While April 2025 witnessed a record GST collection of ₹2.37 lakh crore, driven primarily by year-end filings, the sustained high figures in May indicate continued economic momentum. Net GST revenue (after refunds) surged by over 20% year-on-year to ₹1.73 lakh crore. Domestic collections grew by 13%, complemented by a significant 25.7% increase in import-related GST contributions.
Among the southern states, Telangana reported a 6% increase in GST revenue, rising from ₹4,986 crore in May 2024 to ₹5,310 crore in May 2025. This growth reflects relatively stable economic activity in the state. Conversely, Andhra Pradesh experienced a slight decline of 2%, with collections falling from ₹3,890 crore to ₹3,803 crore, possibly due to subdued consumption or weaker business activity during the period.
At the national level, Maharashtra maintained its position as the largest contributor to GST collections, generating ₹31,530 crore. It was followed by Karnataka and Tamil Nadu, which contributed ₹14,299 crore and ₹12,230 crore respectively. These three states continue to dominate the country’s indirect tax revenue, benefiting from their strong industrial and service sectors, robust compliance mechanisms, and elevated consumption levels.
The sustained high GST collections reinforce positive economic trends, reflecting resilience and steady growth across multiple sectors.
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