Gross GST collections rose 3.2% to ₹1.94 trillion in May 2026, demonstrating continued growth momentum in India's indirect tax system despite geopolitical tensions in West Asia. According to government data released on Monday, the collections were driven by improved supplies of goods and services, along with continued expansion of collection from imports. The previous month's collections stood at ₹1.88 trillion, indicating sustained growth in tax revenues. As per The Hindu BusinessLine, adjusted for one-time payments, GST revenue grew 9% in May 2026, with domestic GST growth at 5%, showing broad-based expansion across all sectors. However, officials note that the softer headline numbers do not indicate any broad-based slowdown in economic activity, as May collections largely reflect transactions undertaken in April when consumption and business activity remained robust.
The gross GST collections comprised ₹37,397 crore in Central GST (CGST) from domestic transactions, ₹45,143 crore in State GST (SGST), and ₹51,990 crore in Integrated GST (IGST). As reported by Business Standard, IGST collection from imports rose significantly by 20.2% during May to ₹60,166 crore, reflecting strong momentum in the last few months. The latest data shows gross revenue from imports rose sharply by 19.1% year-on-year to ₹59,654 crore, indicating continued strength in import-related tax collections. The bulk of this import growth is driven by raw materials and intermediate inputs that feed India's industrial production chain, with officials attributing the rise largely to imports of industrial raw materials, intermediate goods and energy products, suggesting sustained momentum in domestic manufacturing activity.
Taxable supplies of goods demonstrated robust growth of 26.9% during the reported period, with positive growth recorded across all 27 commodity groups, confirming the breadth and durability of domestic demand. According to government sources cited by The Hindu BusinessLine, taxable supply rose to ₹40.10 lakh crore as against ₹31.61 lakh crore during the corresponding period of the last fiscal. The services sector also showed healthy expansion with 22.2% growth to over ₹11.50 lakh crore in April 2026-27, with every major service category registering positive growth. Real estate, construction, transportation and telecommunications were among the key contributors, reinforcing the broader investment and consumption narrative across all major economic sectors.
GST refunds grew 2.6% to ₹27,281 crore during May, as reported by Business Standard. After adjusting for these refunds and accounting for a high base effect from April's record collections, net GST revenues in May rose 3.3% to approximately ₹1.67 trillion. According to The Hindu BusinessLine, adjusted net GST collections (after refunds) have grown at 10.1%, with faster refund processing and greater automation improving liquidity for exporters and manufacturers while maintaining revenue buoyancy. The previous month had achieved an all-time high GST mop-up of ₹2.43 trillion in April, setting a benchmark for the current month's performance. For the first two months of the current financial year, gross GST collections increased 6.2% to ₹4.37 lakh crore while net GST revenue rose 5.5% to ₹3.78 lakh crore.
