GST Revenue Nears Rs 2 Lakh Crore in May, Maintains Strong Growth Momentum

New Delhi: India's Goods and Services Tax (GST) collections remained robust in May, with gross revenues approaching the Rs 2 lakh crore mark despite ongoing geopolitical uncertainties in West Asia.

According to government data released on Monday, gross GST collections stood at Rs 1,94,184 crore in May, registering a 3.2 per cent increase from Rs 1,88,172 crore collected during the same month last year.

Net GST revenue, after accounting for refunds, reached Rs 1,66,904 crore, reflecting a year-on-year growth of 3.3 per cent.

The government also reported that GST refunds worth Rs 27,281 crore were issued during the month, up 2.6 per cent compared to May last year.

Officials noted that after adjusting for a significant one-time payment received in May 2025, gross GST revenue growth for May 2026 works out to around 9 per cent, while adjusted net GST growth is estimated at approximately 10 per cent.

Domestic GST collections, however, showed some moderation. Gross domestic revenue stood at Rs 1,34,530 crore, marking a 2.6 per cent decline compared to the corresponding period last year.

In contrast, tax collections from imports witnessed strong growth. Gross GST revenue from imported goods rose 19.1 per cent year-on-year to Rs 59,654 crore, highlighting continued strength in import-related economic activity.

For the first two months of the current financial year, GST collections have maintained a healthy trajectory. Gross GST revenue rose 6.2 per cent to Rs 4.37 lakh crore, while net collections increased 5.5 per cent to Rs 3.78 lakh crore.

A key factor affecting the year-on-year comparison was a one-time payment of nearly Rs 10,000 crore made by a telecom company towards spectrum allocation in May 2025, which had boosted last year's figures.

The latest numbers come after a record-breaking April, when GST collections touched an all-time high of Rs 2,42,702 crore, representing an 8.7 per cent increase over the previous year. Net GST revenue in April stood at Rs 2,10,909 crore after refunds, recording a growth of 7.3 per cent.

The continued strength in GST collections indicates steady economic activity and resilient tax compliance, even as global geopolitical developments and external uncertainties continue to pose challenges.

With inputs from IANS