In May 2025, Gujarat’s Goods and Services Tax (GST) revenue reached ₹6,265 crore. This marks a significant increase of 20% compared to May 2024, when the revenue was ₹5,234 crore. The growth is notable as it outpaces the national average GST growth rate of 16% during the same period.
The state has also seen solid contributions from other tax categories. In May 2025, the value-added tax (VAT) revenue was ₹2,783 crore. Additionally, the revenue from electricity duty was ₹1,137 crore, and business taxes contributed ₹22 crore. Overall, Gujarat’s total revenue from GST, VAT, electricity duty, and business taxes amounted to ₹10,244 crore, remaining above the ₹10,000 crore mark since January 2025.
This growth in revenue reflects the state’s strong economic activity and compliance with tax regulations. The government has implemented various measures to improve GST collection, including the GST Amnesty Scheme, which has processed 60% of eligible applications by May 2025. The scheme has facilitated the collection of dues from over 6,400 taxpayers.
In comparison, the national GST revenue grew by 16%, reaching ₹2.01 lakh crore. This increase is largely driven by a rise in domestic transactions and imports. In May 2024, the national GST revenue was lower, at ₹1.72 lakh crore. The rise in Gujarat’s GST revenue is a positive indicator of the state’s economic health, showing that businesses are thriving and contributing to the tax base.
The figures suggest a robust demand in the local market, and a decline in inflation rates has left consumers with more disposable income. This economic trend is a positive sign for the state, demonstrating a resilient economic environment despite challenges in international trade.
In summary, the notable increase in Gujarat’s GST revenue is a strong indicator of the state’s economic performance. With ongoing efforts to enhance compliance and collect dues, Gujarat is likely to continue this upward trend in the coming months. The GST Amnesty Scheme has played a crucial role in this growth, allowing businesses to settle their tax liabilities and contribute to the state’s revenue.
As Gujarat’s economy continues to grow, it remains essential for the government to maintain this momentum and ensure that the tax collection mechanisms are efficient and effective. This will not only support public services but also foster an environment conducive to business growth and development.
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