India’s Goods and Services Tax (GST) collections continued to remain strong in May 2026, with gross revenues rising 3.2% year-on-year (YoY) to Rs 1.94 lakh crore, reflecting resilient domestic consumption, higher taxable supplies, and robust import-related tax collections.

Key Highlights

• India's GST collections rose 3.2% year-on-year to Rs 1.94 lakh crore during May 2026.
• Strong import revenues and rising taxable supplies boosted GST collections despite economic headwinds globally.

According to official government data released on Monday, gross GST collections stood at Rs 1.94 lakh crore during May 2026, compared to Rs 1.88 lakh crore collected during the same period last year. The latest figures underline the continued strength of economic activity despite global uncertainties and sector-specific challenges.

Of the total collections, Central GST (CGST) from domestic transactions contributed Rs 37,397 crore, while State GST (SGST) collections stood at Rs 45,143 crore. Integrated GST (IGST) collections reached Rs 51,990 crore during the month.

Strong Growth in Goods and Services Consumption

The May GST data highlighted healthy demand across both goods and services segments.

Taxable supplies of goods increased 26.9% year-on-year, indicating strong consumer demand and sustained economic activity across manufacturing and retail sectors. Meanwhile, taxable supplies of services grew 22.2%, reflecting continued resilience in domestic consumption and business activity.

The broad-based growth suggests that economic momentum remains intact despite concerns around inflationary pressures, global trade disruptions, and geopolitical uncertainties.

Import Revenues Remain Key Growth Driver

Import-related tax collections emerged as one of the strongest contributors to GST growth during May.

IGST collections from imports surged 19.1% year-on-year to Rs 59,654 crore, signaling continued expansion in industrial production, trade flows, and demand for raw materials and intermediate goods. Analysts noted that the growth in import tax revenues significantly outpaced overall GST growth, highlighting the resilience of India's industrial and trade sectors.

Net GST Revenue Crosses Rs 1.66 Lakh Crore

GST refunds during May rose 2.6% to ₹27,281 crore. After adjusting for refunds, net GST revenues increased 3.3% year-on-year to approximately Rs 1.67 lakh crore, demonstrating stable revenue generation and improved tax compliance.

The latest numbers follow April’s record-breaking GST collection of Rs 2.43 lakh crore, the highest monthly GST revenue since the indirect tax regime was implemented in July 2017.

Also Read: India GST Collections Hit Record Rs 2.43 Lakh Crore in April 2026

Mixed State-Level Performance

At the state level, GST collection trends remained mixed. Uttar Pradesh recorded a strong 13% increase in collections, while Haryana and Telangana also reported healthy growth. However, major economic centers including Delhi, Tamil Nadu, and West Bengal witnessed relatively moderate growth during the month.

According to Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat, "May 2025 included a one-time GST payment of nearly Rs 10,000 crore related to spectrum allocation. Adjusting for this exceptional item, gross GST collections in May 2026 effectively grew around 9%, while net collections rose more than 10%."

Experts noted that maintaining collections close to the Rs 2 lakh crore mark without extraordinary revenue support demonstrates the growing maturity and stability of India’s GST framework.