Kerala’s GST Collection in May 2025
By Aaerm Law Associates | June 3, 2025
📊 Kerala’s GST Collection in May 2025: A 24% Year-on-Year Growth
In May 2025, Kerala’s Goods and Services Tax (GST) collection reached ₹3,210 crore, marking a 24% increase compared to the same period last year. However, this figure represents a 6.5% decline from April 2025’s collection of ₹3,436 crore, attributed to the high transactions in March, the final month of the 2024–25 financial year.
Despite the year-on-year growth, Kerala’s net GST revenue over the past two months decreased by 10%, from ₹5,547 crore to ₹4,965 crore, following post-settlement adjustments. These adjustments include the settlement of Integrated GST (IGST) and GST compensation, where 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.
📌 Breakdown of GST Components
- Central GST (CGST): ₹2,236 crore
- State GST (SGST): ₹2,783 crore
- Total GST Collection: ₹3,210 crore
The state currently has 4,25,746 registered GST payers.
📉 Post-Settlement Adjustments Impact
The decline in net GST revenue is attributed to post-settlement adjustments, which include:
- Integrated GST (IGST): The settlement of IGST affects the state’s share of revenue from inter-state trade.
- GST Compensation: Adjustments related to GST compensation impact the overall revenue distribution.
These factors have led to a 10% decrease in net GST revenue compared to the previous year.
📈 National GST Collection Overview
On a national level, India’s GST collection in May 2025 stood at ₹2.01 lakh crore, reflecting a 16.4% increase from ₹1.72 lakh crore in May 2024. The breakdown is as follows:
- Gross Domestic Revenue: ₹1.5 lakh crore
- Revenue from Imports: ₹51,266 crore
Among states, Maharashtra led with ₹31,530 crore in GST collection, followed by Karnataka with ₹14,299 crore, and Tamil Nadu with ₹12,230 crore.
📉 Comparison with Previous Months
- April 2025: ₹3,436 crore
- May 2025: ₹3,210 crore
The decline from April to May is attributed to the high transactions in March, which inflated the April figures.
📊 Graphical Representation
Source: PCSurveysIndia
🧾 Conclusion
While Kerala’s GST collection in May 2025 shows a 24% year-on-year growth, the 10% decrease in net revenue due to post-settlement adjustments highlights the complexities of revenue distribution mechanisms. Understanding these dynamics is crucial for stakeholders to navigate the fiscal landscape effectively.
