India’s gross GST collection increased 3.2 percent year-over-year (YoY) to Rs 1,94 lakh crore in May 2026, on higher supplies of goods and services and collection from imports, according to the official data released on Monday.
In May 2025, the total amount of GST collection was Rs 1.88 lakh crore.
The total amount of GST collected from domestic transactions during the reported month was Rs 37,397 crore for Central GST (CGST), Rs 45,143 crore for State GST (SGST), and Rs 51,990 crore for Integrated GST (IGST).
During the given period, taxable supplies of commodities increased by 26.9 percent due to growing domestic demand, whereas the services sector’s growth was 22.2 percent, indicating structural resilience in domestic consumption.
In May, the amount of IGST collection from imports increased by 19.1% to Rs 59,654 crore, indicating a rise in industrial capacity. Refunds for goods and services tax (GST) increased by 2.6 percent to Rs 27,281 crore.
Net GST collections increased 3.3% to approximately Rs 1.67 lakh crore in May after correcting for refunds. The GST mop-up in April hit a record-breaking Rs 2.43 lakh crore.
Gross GST collection for the first two months of FY2026–2027 (April and May) totals Rs 4.37 lakh crore, up 6.2% from Rs 4.11 lakh crore during the same period in FY2025–2026.
“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.
Vivek Jalan, Partner, Tax Connect Advisory Services LLP, said India’s GST performance in May 2026 reflects both challenges and opportunities. The numbers highlight the urgent need for structural changes in GST.
The upcoming GST Council meeting must address deepened inverted duty structures, particularly refunds on input services, which continue to distort competitiveness, he said.
“Bringing petroleum products under GST would be a landmark reform to rationalize tax incidence and reduce cascading effects. Equally important is easing the refund process with clear, transparent guidelines — especially around tagging certain taxpayers as ‘risky’ — so that genuine businesses are not burdened by delays,” said Jalan.
