GST collections rise 3.2% to ₹1.94 lakh crore in May; import-led revenues drive growth

New Delhi: India's gross Goods and Services Tax (GST) collections rose 3.2% year-on-year to ₹1.94 lakh crore in May 2026, reflecting a steady growth, official data released Monday showed.

The underlying revenue growth was closer to 9% after excluding a one-time ₹10,000 crore spectrum-related payment in May 2025 that inflated the base, officials said.

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A key driver of the growth was the rise in imports driven by raw materials and intermediates. Integrated GST surged 19.1% to ₹59,654 crore, on the back of electronic components, copper inputs and lithium-ion battery imports.

India's merchandise imports for April were $71.9 billion, up 10% against the same period last year.

"Notably, growth in import-led revenues continues to outpace domestic transactions, which could indicate some softness in consumption-possibly reflecting a moderation in discretionary spending amid ongoing geopolitical uncertainties," said Pratik Jain, partner, Price Waterhouse & Co.

Abhishek Jain, indirect tax head & partner at KPMG attributed the rise in GST on imports to rupee depreciation. "Import GST has recorded a near 20% growth, which may also be attributed to rupee depreciation," he said, adding that adjusted for the one-time telecom payment, domestic collections reflect a moderate growth in line with economic conditions.

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Government officials added that the high import numbers reflects confidence among businesses in sustained domestic demand conditions and shows India's industrial order pipeline remains healthy.

"Imports of raw materials are a leading indicator of demand for manufacturing activity," officials said.

Gross Central GST (CGST) collection from domestic transactions during the reported month was ₹37,397 crore and state GST (SGST) was ₹45,143 crore. Net collections came in at ₹1.67 lakh crore, up 3.3% year-on-year with refunds witnessing a growth of 2.6% at ₹27,281 crore.

Officials, however, played down slowdown in domestic demand adding that the taxable supply data for both goods and services reflected healthy double digit growth.