India's gross Goods and Services Tax (GST) collection rose by 3.2 percent year-over-year to Rs 1.94 lakh crore in May 2026, according to official data released on Monday. This growth was driven by higher supplies of goods and services as well as increased collection from imports.
Comparison with Previous Year
In May 2025, the total GST collection stood at Rs 1.88 lakh crore. The latest figures indicate a steady improvement in revenue mobilization.
Breakdown of Domestic Collections
The total GST collected from domestic transactions in May 2026 comprised Rs 37,397 crore as Central GST (CGST), Rs 45,143 crore as State GST (SGST), and Rs 51,990 crore as Integrated GST (IGST).
Growth in Taxable Supplies
During the reported month, taxable supplies of commodities increased by 26.9 percent, reflecting robust domestic demand. The services sector also showed strong performance with a growth rate of 22.2 percent, indicating structural resilience in domestic consumption.
Import-Related Collections
IGST collection from imports rose by 19.1 percent to Rs 59,654 crore in May, signaling an uptick in industrial capacity utilization. Meanwhile, refunds for GST increased by 2.6 percent to Rs 27,281 crore.
Net GST Collections
After adjusting for refunds, net GST collections increased by 3.3 percent to approximately Rs 1.67 lakh crore in May. In comparison, the GST mop-up in April 2026 had reached a record Rs 2.43 lakh crore.
Cumulative Performance
Gross GST collection for the first two months of fiscal year 2026-2027 (April and May) totaled Rs 4.37 lakh crore, up 6.2 percent from Rs 4.11 lakh crore during the same period in the previous fiscal year. Sources commented, "This cumulative year-on-year performance is healthy and in the right direction to achieve the full-year GST revenue target."
Budget Target
The government has budgeted to collect Rs 10.19 lakh crore from GST in the current fiscal year.
Expert Commentary
Vivek Jalan, Partner at Tax Connect Advisory Services LLP, noted that India's GST performance in May 2026 reflects both challenges and opportunities. He emphasized the need for structural changes in GST, particularly addressing inverted duty structures and refunds on input services. Jalan stated, "Bringing petroleum products under GST would be a landmark reform to rationalize tax incidence and reduce cascading effects. Equally important is easing the refund process with clear, transparent guidelines — especially around tagging certain taxpayers as ‘risky’ — so that genuine businesses are not burdened by delays."
