India's GST Collections Moderate in May 2026, Driven by Imports

India's gross Goods and Services Tax (GST) collections moderated to Rs 1.94 lakh crore in May 2026 from a record Rs 2.42 lakh crore in April, though revenues remained 3.2% higher than the Rs 1.88 lakh crore collected in the same month last year, according to official data released on Sunday.

Net GST revenue for May rose 3.3% year-on-year to Rs 1.67 lakh crore, compared with Rs 1.62 lakh crore in May 2025. Total refunds increased 2.6% to Rs 27,281 crore during the month, while cumulative refunds for the financial year so far climbed 10.9% to Rs 59,063 crore.

The growth in collections continued to be driven by imports. Gross GST revenue from imports rose 19.1% year-on-year to Rs 59,654 crore in May, while gross domestic revenue declined 2.6% to Rs 1.35 lakh crore. On a net basis, customs GST collections jumped 19.7% to Rs 49,403 crore, whereas net domestic revenue fell 2.3% to Rs 1.18 lakh crore.

For the first two months of FY27, gross GST collections rose 6.2% to Rs 4.37 lakh crore, while net GST revenue increased 5.5% to Rs 3.78 lakh crore. Gross domestic revenue during April-May grew 1.3% year-on-year to Rs 3.19 lakh crore, while gross import revenue surged 22.3% to Rs 1.17 lakh crore, underscoring the continued contribution of import-linked taxes to overall collections.

State-wise data showed varied trends. Among major states, Karnataka recorded an 11% rise in pre-settlement SGST collections in May, while Maharashtra, Andhra Pradesh and Uttar Pradesh posted growth of 8%, 11% and 9%, respectively. Kerala saw a robust 19% increase, while Gujarat's collections rose 3%. In contrast, Delhi witnessed a sharp 36% decline in pre-settlement SGST collections, while Tamil Nadu and Rajasthan reported modest contractions.

After IGST settlement, Karnataka's SGST revenue rose 17% year-on-year in May, Gujarat grew 16%, Andhra Pradesh 16%, Kerala 15% and Telangana 14%. Haryana posted a strong 22% increase, while Delhi remained an outlier with post-settlement collections declining 26%.

The latest data suggests that while domestic consumption-linked tax collections softened during the month, strong import-related revenues continued to support overall GST growth at the start of the fiscal year.

"Post GST 2.0, a steady 7–8% monthly growth seems to be emerging as the norm which is broadly in line with budget estimates," said Pratik Jain, Partner at Price Waterhouse & Co.

He added "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."