The gross Goods and Services Tax (GST) collections rose a modest 3.2% year-on-year to Rs 1.94 lakh crore in May 2026, driven largely by a sharp increase in tax revenues from imports, while domestic collections registered a decline amid a high base effect from a one-time telecom spectrum-related payment last year.
According to data released by the Ministry of Finance on Monday, gross GST collections stood at Rs 1,94,184 crore in May 2026 compared with Rs 1,88,172 crore in the corresponding month last year. After accounting for refunds, net GST revenue increased 3.3% to Rs 1.66 lakh crore from Rs 1.61 lakh crore a year ago.
Domestic GST collections fell 2.6% to Rs 1.34 lakh crore during the month. The government, however, said May 2025 revenues included around Rs 10,000 crore of one-time GST payments made by a telecom operator for spectrum allocation, making the year-ago base unusually high.
“Without this one-off payment in May 2026, adjusted growth is the appropriate measure to evaluate GST performance,” the ministry said, adding that on an adjusted basis gross GST collections grew 9% and net collections rose 10.1%.
The domestic component comprised Rs 37,397 crore in Central GST (CGST), Rs 45,143 crore in State GST (SGST) and Rs 51,990 crore in Integrated GST (IGST).
In contrast to the weakness in domestic collections, import-related revenues recorded strong growth. Gross IGST collections from imports rose 19.1% to Rs 59,654 crore in May 2026 from Rs 50,070 crore a year earlier.
Finance Ministry officials attributed the increase largely to imports of industrial raw materials and intermediate goods used in manufacturing. A review of import data for the first 25 days of May showed significant growth in electronic components, memory chips, copper inputs, lithium-ion batteries and coal imports.
Coal imports emerged as the largest contributor to incremental IGST collections, with tax revenues from coal shipments surging 391 per cent. Processing units used in computers and data centres recorded a 387% rise, while memory chip imports increased 205%. Imports of lithium-ion batteries grew 66%, reflecting rising activity in the electric vehicle and energy storage sectors.
“The bulk of this import growth is driven by raw materials and intermediate inputs that feed India’s industrial production chain,” a Finance Ministry source said.
The government also highlighted strong growth in taxable supplies across both goods and services sectors during April 2026, as reported in GST returns filed in May.
Taxable supply in the goods sector rose 26.9% year-on-year to Rs 40.1 lakh crore, with all 27 commodity groups posting positive growth. Strong gains were recorded in electronics, telecom equipment, precious metals, automobiles and manufactured goods.
Similarly, taxable supply in the services sector increased 22.2% to Rs 11.5 lakh crore. Real estate services, hospitality, transport and logistics, legal services and business support services were among the key growth drivers.
Ikesh Nagpal, Lead at AKM Global, said GST collections remaining close to the Rs 2 lakh crore mark despite geopolitical tensions in West Asia underscored the resilience of the Indian economy.
“Import GST collections grew over 19%, reflecting strong trade activity, although part of the increase may be attributable to higher crude prices, supply-chain disruptions arising from the Iran conflict and a stronger US dollar,” he said.