Gujarat GST mop-up shows modest 5% growth in May

AHMEDABAD: The gross Goods and Services Tax (GST) revenue collected in Gujarat in May stood at Rs 9,800 crore, marking a modest 5% growth compared to Rs 9,321 crore in the same month of 2022, as per data provided by the Union ministry of finance. This growth rate is slower than the nationwide growth in GST collection, which stood at 12% during the same period, reaching Rs 1.57 lakh crore.
In May, revenue from the import of goods increased by 12%, while revenue from domestic transactions (including import of services) grew by 11% compared to the previous year, according to the ministry. Gujarat’s GST collection comprises Rs 3,371.18 crore of SGST, Rs 2,729.13 crore of CGST, Rs 3,025.07 crore of IGST, and additional income from cess. However, GST collection from Gujarat dropped by 16% compared to April of this year.
Industry experts attribute the decline in tax collection growth to reduced demand, which has adversely affected most industrial sectors. “The overall reduction in discretionary spending within the domestic market has become a significant obstacle to tax collection, as consumption has decreased. Additionally, global economic uncertainty has resulted in a decline in exports, impacting the production levels of various ancillary industries. Textiles and chemicals are among the sectors hit hardest by these challenges in Gujarat. Consequently, this situation is expected to have an impact on tax collection,” said Chintan Thaker, chairman of Assocham Gujarat state council.
Interestingly, Gujarat’s revenue through GST, including SGST and IGST settlement, has increased by 24% from Rs 4,218.36 crore in May 2022 to Rs 5,156 crore in May of this year, according to officials from the state GST department.
Interestingly, Gujarat’s revenue through GST, which includes SGST mop-up and IGST settlement, has increased 22.22% during the month from Rs 4,218.36 crore in May 2022 to Rs 5,156 crore in May this year, according to state GST department officials.