GST collections rise 3.2% to Rs 1.94 lakh crore in May 2026 — What’s driving the growth?
India’s gross GST revenue rose 3.2% year-on-year to Rs 1.94 lakh crore in May, according to government data reported by PTI. The increase was driven by improved supplies of goods and services and continued growth in tax collections from imports.
Gross GST collection stood at Rs 1.88 lakh crore in May 2025. During the reported month, gross Central GST (CGST) collection from domestic transactions stood at Rs 37,397 crore, State GST (SGST) at Rs 45,143 crore, and Integrated GST (IGST) at Rs 51,990 crore.
FY27 collections up 6.2% so far
For the first two months of FY27 (April and May), gross GST collections grew 6.2% year-on-year to Rs 4.37 lakh crore, according to official data. In April, GST collections hit an all-time high of Rs 2.43 lakh crore, up 8.7% year-on-year. In March as well, India’s GST collections had crossed the Rs 2 lakh crore mark.
The total GST mop-up, however, was lower than the record-high collection of Rs 2.43 lakh crore reported in April.
Imports, domestic demand drive GST growth
Taxable supplies of goods grew 26.9% during the month, reflecting strong domestic demand, while taxable supplies in the services sector increased 22.2%, indicating resilience in consumption. IGST collection from imports rose 19.1% to Rs 59,654 crore, signalling expansion in industrial activity.
GST refunds increased 2.6% year-on-year to Rs 27,281 crore. After adjusting for refunds, net GST revenue rose 3.3% to about Rs 1.67 lakh crore.
Last year, in September 2025, India announced GST rationalisation, under which the GST Council streamlined the tax structure by moving towards two principal tax slabs of 5% and 18%, while introducing a 40% rate for select luxury and demerit goods. Several items that were previously taxed at 12% and 28% were shifted to lower slabs as part of efforts to simplify compliance, reduce the tax burden on consumers, and boost demand.
