India’s GST Boost in May 2025 A Look at the Import Surge
India’s GST collection in May 2025 touched a robust ₹1.73 lakh crore, with a key driver being a sharp surge in imports, according to a report by Nomura. This comes amid rising domestic demand and improved compliance systems.
But what does this mean for businesses, importers, and GST-registered taxpayers?
Let’s break it down.
GST Collection May 2025 – Key Figures
Here’s what the government reported for May 2025:
| Component | Amount (₹ Crore) |
|---|---|
| CGST | 33,253 |
| SGST | 41,239 |
| IGST | 87,412 |
| Cess | 11,096 |
| Total GST Collection | 1,72,960 |
🔹 IGST on imports alone: ₹43,292 crore – a 22% YoY increase, signaling a strong pickup in import activity.
Why Did GST Collection Rise?
According to Nomura India and CBIC updates, the key reasons are:
- Surge in imports: Higher global and domestic trade activity boosted IGST collections.
- Improved compliance: Real-time invoice matching and AI-driven GSTN tracking deterred evasion.
- Seasonal business uptick: Sectors like electronics, gold, and auto saw higher inbound shipments.
Impact on Importers and Businesses
This spike affects you if you’re into imports or claim GST credits:
✅ Input Tax Credit (ITC) Opportunities
- IGST paid on imports is available as credit in the same month.
- Boosts working capital, especially for traders and manufacturers.
⚠️ Key Compliance Watchpoints
- Ensure timely GSTR-2B reconciliation to claim ITC.
- Match BOE (Bill of Entry) details with GSTR filings.
- For large importers, customs + GST scrutiny has increased.
Expert Insight: What CA Firms Are Advising
“Many clients miss ITC on imports due to minor mismatches in BOE and GSTR-2B. Reconciliation software or ERP syncing is now essential,” says CA Ashwin Mehta, Mumbai.
Stay audit-ready by:
- Maintaining import documents in digital format.
- Cross-verifying IGST payments with ICEGATE portal data.
- Filing GSTR-2A/2B compliant returns on time.
Legal Backing: GST on Imports
- Section 3(7) of Customs Tariff Act, 1975: IGST is levied on imported goods.
- Section 5 of IGST Act, 2017: Import of goods is treated as inter-state supply and taxed accordingly.
- Credit admissibility under Section 16(1) of CGST Act if used in business.
💡 Reminder: IGST paid on imports is not blocked credit unless used for exempt or personal purposes.
Summary
GST collection in May 2025 surged to ₹1.73 lakh crore, led by a 22% rise in IGST on imports. Businesses must focus on ITC matching and document compliance to stay audit-safe.
FAQs
Q1. Is IGST on imports fully creditable?
Yes, if the goods are used for taxable business purposes and invoices are matched.
Q2. Where to verify IGST paid on imports?
Use the ICEGATE portal or your GSTR-2B auto-drafted data.
Q3. What happens if BOE and GSTR data don’t match?
You may lose ITC temporarily or face audit queries. Always reconcile monthly.
Final Thoughts
The May 2025 GST rise is a good sign for the economy — but it also puts a spotlight on import-related compliance. Businesses should now double down on reconciliation, documentation, and real-time tracking to avoid ITC issues.