Kerala's GST collection rises 24% in May, but net revenue dips 10% post-settlement of taxes

The Goods and Service Tax (GST) collection in Kerala rose to ₹3,210 crore in May, representing an increase of 24 per cent compared to the same period last year, according to government data. 

This figure is 6.5 per cent lower than the revenue earned in April this year, when the state recorded ₹3,436 crore in total GST collections. That spike was attributed to transactions made in March, the final month of the 2024–25 financial year.

Despite the year-on-year growth, Kerala's net GST revenue in the last two months declined by 10 per cent to ₹4,965 crore from ₹5,547 crore last year, following the post-settlement adjustments. These adjustments include the settlement of Integrated GST (IGST) and GST compensation, wherein the central government transfers the state's share of taxes collected from inter-state trade, known as the SGST portion of IGST, to ensure fair distribution of revenue.

In April and May, the state collected ₹2,236 crore under the Central GST component, while ₹2,783 crore went to the state's coffers. Kerala currently has a total of 4,25,746 registered GST payers. 

The increase in Kerala's monthly GST collection can be partly attributed to the easing inflation in the state, which stood at 5.94 per cent in April. While still the highest among Indian states, this marked a decline from the 6.59 per cent in March. 

Falling inflation boosts consumer spending, which in turn will drive business and manufacturing activity. This increase in economic activity is likely a contributing factor to the year-on-year growth in GST revenue.

National revenue rises 16%
The total GST collection in India also saw a 16.4 per cent increase in May to ₹2.01 lakh crore, compared to ₹1.72 lakh crore in the same month last year. Of this, the total gross domestic revenue was ₹1.5 lakh crore, while revenue from imports was ₹51,266 crore. 

Among states, Maharashtra topped the list of the highest amount of GST collected in May at ₹31,530 crore, marking a 17 per cent increase year-over-year. Karnataka followed with ₹14,299 crore, while Tamil Nadu registered a 25% rise, collecting ₹12,230 crore.

Gujarat recorded ₹11,737 crore in GST revenue. Haryana and Delhi also crossed the ₹10,000 crore mark, collecting ₹10,170 crore and ₹10,366 crore respectively.