India Posts 3.2% Year-on-Year Growth in May GST Revenue

India's GST Collections Show Signs of Moderation in May 2026

India's gross Goods and Services Tax (GST) collections rose 3.2% year-on-year to Rs 1,94,184 crore in May 2026, according to official data released on June 1. This marks a significant slowdown in growth compared to previous months, indicating a moderation in economic activity.

The net GST revenue, after adjusting for refunds, increased 3.3% from a year earlier to Rs 1,66,904 crore. When examining the first two months of the current fiscal year (FY27), the gross GST collections grew 6.2% year-on-year to Rs 4.37 lakh crore. However, the total mop-up in May 2026 was down from a record-high figure of Rs 2.43 lakh crore last month.

The collections for May reflect transactions during April, which was the second straight month facing the impact of the conflict in West Asia that began during February-end. In April 2026, the gross collections were up 8.7 percent on year, while in May 2025, they were up by 16.4 percent on year. This sharp moderation in economic activity is evident in the growth of 3.2 percent recorded in May, which is the lowest figure for this month when compared to at least the past five financial years.

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The data reveals that collections from imports surged 19.1 percent on year to Rs 59,654 crore in May, while collections from domestic transactions fell 2.6 percent on year to Rs 1.35 lakh crore. According to government sources, the adjusted growth in gross revenue mop-up is 9 percent, taking into account the high base-effect in May 2025 due to a one-time payment made by a telecom operator for spectrum allocation. This adjustment provides a more accurate measure of GST performance for May 2026.