New Delhi: India’s gross Goods and Services Tax (GST) collection rose 3.2 per cent year-on-year to ₹1.94 lakh crore in May 2026, driven by higher domestic economic activity and a significant increase in tax collections from imports, according to official data released on Monday.
The GST collection stood at ₹1.88 lakh crore in May 2025.
Of the total revenue collected during the month, Central GST (CGST) accounted for ₹37,397 crore, State GST (SGST) contributed ₹45,143 crore, while Integrated GST (IGST) from domestic transactions stood at ₹51,990 crore.
The data showed strong momentum in domestic consumption, with taxable goods supplies increasing by 26.9 per cent year-on-year, reflecting growing demand across sectors. The services sector also recorded robust growth, with taxable services rising by 22.2 per cent, indicating continued resilience in the economy.
GST collections from imports witnessed a notable jump during the month. IGST revenue from imports increased by 19.1 per cent to ₹59,654 crore, suggesting improved industrial activity and stronger import demand.
Meanwhile, GST refunds issued during May rose by 2.6 per cent to ₹27,281 crore.
After adjusting for refunds, net GST collections increased 3.3 per cent to nearly ₹1.67 lakh crore. The May figures come after a record-breaking GST collection of ₹2.43 lakh crore in April 2026, the highest monthly collection since the tax regime was introduced.
For the first two months of the current financial year (April-May 2026-27), gross GST collections have reached ₹4.37 lakh crore, marking a 6.2 per cent increase compared to ₹4.11 lakh crore collected during the same period last year.
Government sources described the performance as encouraging and said the revenue trend remains on track to meet the fiscal year’s GST target of ₹10.19 lakh crore.
Tax experts, however, have called for further reforms to strengthen the GST framework. Vivek Jalan, Partner at Tax Connect Advisory Services LLP, said issues such as inverted duty structures and delays in refund processing continue to affect businesses.
He also advocated bringing petroleum products under the GST regime, describing it as a major reform that could simplify taxation and reduce cascading tax effects across industries. Jalan further stressed the need for a more transparent refund mechanism to ensure genuine taxpayers do not face unnecessary delays.
