GST Collections Rebound, Showing Steady Growth in May 2026
India's May 2026 gross GST collections saw a slight dip but remained robust with growth over last year. This resilience indicates stronger economic foundations and alignment with fiscal targets, bolstering confidence in India's financial health.
Highlights
- •GST collections eased to Rs 1.94 lakh crore in May 2026
- •Year-over-year growth of 3.2% was recorded over last year's collection of Rs 1.88 lakh crore
- •Growth was broad-based across goods and services sectors, up by 26.9% for goods and 22.2% for services
- •IGST from imports increased 19.1% to Rs 59,654 crore in May
New Delhi - India's gross goods and services tax (GST) collections witnessed a slight deceleration, easing to Rs 1.94 lakh crore in May 2026 from the record-high of Rs 2.42 lakh crore seen in April. However, the growth remained robust with a 3.2 per cent bump compared to the same month last year (Rs 1.88 lakh crore). This performance underscores the economy's steady trajectory towards meeting the projected fiscal targets.
Analysis: Broad-Based Growth Continues
The growth in GST collections was evident across all critical sectors, with the goods tax sector witnessing a 26.9 per cent rise and the services sector showing an impressive 22.2 per cent uptick. Finance ministry data indicate that the overall cumulative performance for April and May is on track to meet full-year revenue targets.
The gross central GST (CGST) was recorded at Rs 37,397 crore, state GST (SGST) at Rs 45,143 crore, and integrated GST (IGST) at Rs 51,990 crore. Notably, the IGST from imports surged by 19.1 per cent during May to Rs 59,654 crore, an indicator of enhanced industrial capacity.
Industry experts believe this growth is a testament to economic resilience and increased domestic production and consumption. According to Price Waterhouse & Co LLP partner Pratik Jain, the GST collections for April and May collectively displayed an 8.8 per cent year-on-year growth, despite geopolitical disruptions and rate cuts.
Despite the rise in input costs due to supply chain issues, the number of businesses are increasingly recognizing favorable conditions for seeking working capital support through relaxed refund provisions for input GST.
