Gross GST revenue for May 2026 rises 3.2% year-on-year but slips sharply from April's record high; imports drive growth as domestic collections dip

Numbers Down From Record High

India's gross GST collections eased to Rs 1.94 lakh crore in May 2026, pulling back from a record Rs 2.42 lakh crore logged in April, though the figure remained 3.2 per cent higher than the Rs 1.88 lakh crore collected in the same month last year. The Finance Ministry released the official data on Monday, June 1.

The moderation was widely anticipated. April's numbers had been buoyed by year-end business activity and tax settlements — a seasonal spike that doesn't carry over into May. Experts noted the softer numbers were largely expected due to the high base effect and seasonal adjustments following the financial year-end surge.

Imports Carry the Month

The real story in May's data was the sharp divergence between import-driven and domestic collections. IGST collection from imports rose 19.1 per cent during May to Rs 59,654 crore, signalling expansion in industrial capacity, the Finance Ministry stated.

Sources said that over 66% rise in lithium-ion battery imports underlines India's deepening integration into the EV and grid storage ecosystem. Coal collections rose by more than 391%, reflecting heightened fuel and coking coal requirements of steel plants, cement kilns, and thermal power generation.

On the domestic side, however, the picture was less encouraging. Gross domestic revenue took a slight dip of 2.6 per cent, falling to Rs 1,34,530 crore in May 2026 from Rs 1,38,102 crore in May 2025.

Net Collections and Refunds

After adjusting refunds, net GST revenues in May rose 3.3 per cent to about Rs 1.67 lakh crore. Total refunds for the month grew 2.6 per cent to Rs 27,281 crore, of which domestic refunds accounted for Rs 17,030 crore.

Adjusting for a Rs 10,000 crore one-time payment made by a telecom operator for spectrum allocation in May 2025, gross GST collection this May would be higher by about 9% and net collection higher by about 10.1%. This is a significant qualifier, as last year's base had been artificially elevated by that one-off entry.

Component-Wise Breakup

GST collections from domestic transactions reached Rs 1.34 lakh crore in May, comprising Rs 37,397 crore in CGST, Rs 45,143 crore in SGST, and Rs 51,990 crore in IGST.

The growth was broad-based across all major goods and services categories, with taxable supplies in the goods sector rising 26.9 per cent and services sector growing 22.2 per cent, government sources said.

State-by-State Picture

State-wise performance varied across the country. Maharashtra remained the largest contributor to domestic collections despite a flat growth rate, generating Rs 29,141 crore compared to Rs 29,236 crore last year. Karnataka registered a marginal increase of one per cent to reach Rs 13,130 crore, while Gujarat also posted a one per cent growth to collect Rs 11,206 crore.

On the other end, Lakshadweep saw its collections plunge 82 per cent to just Rs 1 crore, and Sikkim recorded a 53 per cent drop, with revenue falling to Rs 200 crore.

Cumulative Picture Remains Positive

Despite the month-on-month dip, the broader fiscal trajectory remains intact. Gross GST collection for the first two months of FY2026–27 totals Rs 4.37 lakh crore, up 6.2% from Rs 4.11 lakh crore during the same period in FY2025–26.

"This cumulative year-on-year performance is healthy and in the right direction to achieve the full-year GST revenue target," sources said. The government has budgeted to mop up Rs 10.19 lakh crore from GST in the current fiscal.