GST collections stay robust at ₹1.94 lakh crore in May, reflecting strong domestic demand

THEBUSINESSBYTES BUREAU

NEW DELHI, JUNE 1, 2026

India’s Goods and Services Tax (GST) collections continued to demonstrate resilience and economic momentum, with gross GST revenues rising 3.2 per cent year-on-year to more than ₹1.94 lakh crore in May 2026, according to official data released on Monday. The collections stood at ₹1.88 lakh crore in the corresponding month last year.

The steady growth in GST revenues was driven by higher supplies of goods and services across the country, coupled with a significant rise in tax collections from imports, underscoring sustained economic activity and expanding industrial capacity.

During May, gross Central GST (CGST) collections from domestic transactions amounted to ₹37,397 crore, while State GST (SGST) collections stood at ₹45,143 crore. Integrated GST (IGST) collections reached ₹51,990 crore, reflecting healthy interstate trade and business activity.

A notable highlight of the month was the sharp increase in taxable supplies. Taxable supplies of goods recorded a robust growth of 26.9 per cent, signalling strong domestic demand and consumption trends. The services sector also posted impressive growth, with taxable supplies rising 22.2 per cent, indicating continued resilience in the economy’s service-driven segments.

Tax collections from imports remained buoyant, with IGST revenue from imported goods increasing 19.1 per cent to ₹59,654 crore during the month. The rise points to growing industrial requirements and expanding manufacturing activity.

GST refunds during May increased 2.6 per cent to ₹27,281 crore. After accounting for refunds, net GST revenue stood at approximately ₹1.67 lakh crore, registering a growth of 3.3 per cent over the previous year.

The latest figures come after GST collections touched an all-time high of ₹2.43 lakh crore in April 2026, setting a strong tone for the current financial year.

On a cumulative basis, gross GST collections for the first two months of FY 2026-27 (April and May) reached ₹4.37 lakh crore, compared to ₹4.11 lakh crore during the same period of FY 2025-26, marking a healthy growth of 6.2 per cent.

The sustained rise in GST revenues is expected to strengthen the government’s fiscal position as it aims to achieve its budgeted GST collection target of ₹10.19 lakh crore for the current financial year. The latest numbers reaffirm the continued expansion of economic activity, supported by strong consumption, resilient services growth, and improving industrial demand.