New Delhi. GST (Goods and Service Tax) has proved a milestone in making India’s economic structure organized, transparent and empowering. With the tremendous start of FY 2025-26, now the GST collection has now crossed the GST collection of two lakh crore rupees for the second consecutive month. It is not only a sign of revenue growth, but also a proof of a stable, strong and digital Indian economy.
Collection in May 2025 – 2.01 lakh crore rupees
In May, the GST collection stood at 16.4% more than the previous year and reached Rs 2,01,050 crore. In this collection:
• CGST (Central GST): ₹ 35,434 crore
• SGST (State GST): ₹ 43,902 crore
• IGST (Integrated GST): ₹ 1,08,836 crore
• Cess (Cess): ₹ 12,879 crore
A refund of Rs 27,210 crore was also released during this period, which led to the net collection of ₹ 1.74 lakh crore – which is 20.4% higher than in May 2024.
A total collection of ₹ 4.38 lakh crore in the first two months
In the first two months (April -mai) of this financial year, the government has collected GST revenue of ₹ 4,37,767 crore, which is 143% higher than the same period last year. This is far ahead of the government’s estimated 11% annual increase in the budget by the government.
GST: Economy gets stability and expansion
GST, which came into force in 2017, established an integrated and uniform system in India’s tax system. This tax was not only effective in preventing tax evasion and promoting digital tracking, but also simplified the trade by eliminating the complexity of multipoint taxation.
GST leads the major benefits to the Indian economy:
1. Transparency and strength in revenue collection
Crossing the figure of two lakh crore rupees every month is proof that the tax net has expanded and control has been found on revenue leakage.
2. Extension of formal economy
Small businesses are now registered through GSTIN, which has increased formal employment and banking and financial access has also been strengthened.
3. Digitization of tax base
Provisions such as e-invoice, e-way bill, and GSTR filing have made the tax system paperless, fullproof and trekable.
4. Industries facilities in inter-state trade
Earlier, business was complex due to different tax systems like VAT, excise, octroi. Now the concept of a tax, a nation, a market has been strengthened.
5. Consumers also benefits
Arrangements like input tax credit have reduced tax load in the price chain, which has eventually benefited from consumers.
GST becomes a symbol of development and faith
Two days ago, when India’s GDP growth rate was recorded at 7.4% in the last quarter of FY 2024-25, the question arose whether this figure is only related to consumption or is also a proof of systemic strength? The answer is – The stability of the tax system found in the form of GST, which increased revenue, improves tax compliance and providing more resources to the government for public investment.
GST became the growth engine of Indian economy
GST has now become an economic reform movement, not just a tax system. The continuous growing collection shows that a bridge of trust has been built between the government and the taxpayers. This is the reason that investment, trade and fiscal stability – India seems to be strong in all three areas.
The imagination of “one nation, one tax” has now moved forward in the direction of ‘one nation, one growth engine “.
