GST growth slows to 3.2% in May, but gold and goods consumption surge underneath
Headline GST collections rose just 3.2% to Rs 1.94 lakh crore, the slowest in six months, dragged by a telecom base effect. Strip that out and adjusted growth runs near 9%, with taxable goods value up 27% and gold/precious metals up 47% — pointing to resilient post-rationalisation retail and jewelry demand.
May GST collections grew just 3.2% to Rs 1.94 lakh crore, slowest in six months, dragged by a high telecom-payment base. Officials cite strong consumption post-Sept GST rationalisation; gold taxable value surged 47%, signaling robust jewelry retail demand.
Why this matters
May GST headline growth looks soft at 3.2%, but stripping out telecom base distortion reveals 9% underlying growth, with gold up 47% and goods up 27%, signaling sustained consumption post rate-rationalisation.
Footfall theme steady with 98 signals in 90 days, consistent with resilient retail consumption.