India's Goods and Services Tax (GST) collections continued to remain robust in May 2026, with gross GST revenue touching Rs 1,94,184 crore, reflecting a 3.2% year-on-year increase compared to Rs 1,88,172 crore collected in May 2025. The latest figures released by the government indicate steady economic activity and improved tax compliance across sectors.
A closer look at the data reveals that the reported growth appears lower due to an exceptional factor in the previous year. The government noted that GST revenue for May 2025 included approximately Rs 10,000 crore as a one-time payment by a telecom operator for spectrum allocation. After adjusting for this extraordinary receipt, the effective growth in gross GST collections for May 2026 works out to around 9%, while adjusted net GST revenue growth stands at 10.1%.
Import Revenue Drives Growth
GST revenue from imports emerged as a major contributor to overall collections. Gross GST revenue from imports increased by 19.1%, rising from Rs 50,070 crore in May 2025 to Rs 59,654 crore in May 2026. On a cumulative basis for April-May 2026, import GST collections recorded a substantial growth of 22.3%.
Domestic GST collections, however, showed a marginal decline of 2.6% during the month, largely because of the high base effect created by the one-time telecom payment received last year.
Net GST Revenue Crosses Rs 1.66 Lakh Crore
After accounting for refunds, the government's net GST revenue stood at Rs 1,66,904 crore in May 2026, registering a growth of 3.3% over the corresponding month last year. Total refunds issued during the month amounted to Rs 27,281 crore, up 2.6% from May 2025.
For the first two months of FY 2026-27, total gross GST collections reached Rs 4,36,887 crore, compared to Rs 4,11,437 crore during the same period of the previous financial year, reflecting a growth of 6.2%. Net GST revenue for the period stood at Rs 3,77,824 crore, up 5.5% year-on-year.
States Show Mixed Performance
Among major states, Uttar Pradesh recorded a strong 13% growth in domestic GST collections, while Haryana grew 8% and Telangana registered a 6% increase. Andhra Pradesh also posted a positive growth of 3%.
On the other hand, several states witnessed declines during the month. Delhi's GST collections fell 17%, Tamil Nadu declined 15%, Assam dropped 13% and Rajasthan recorded an 11% decline compared to May 2025.
Higher Settlements Strengthen State Revenues
The data also showed healthy growth in GST settlements to states. Post-settlement SGST revenue rose by 6% in May 2026, reaching Rs 88,188 crore compared to Rs 82,874 crore in May 2025. States such as Karnataka, Gujarat, Maharashtra, Kerala and Telangana recorded notable gains after IGST settlements.
Outlook
The May 2026 GST figures suggest that indirect tax collections remain on a strong footing despite base-effect distortions. With adjusted gross collections showing 9% growth and import-related revenues remaining buoyant, GST continues to reflect resilience in economic activity and consumption trends. The performance during the first two months of FY 2026-27 indicates a positive start to the fiscal year and provides confidence for revenue projections going forward.
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