India’s GST collections rise 3.2 per cent to Rs 1.94 lakh crore in May

MUMBAI: The taxman’s tally kept ticking upward, even if the sprint slowed to a steady jog. India’s gross GST collections rose 3.2 per cent year-on-year to Rs 1.94 lakh crore in May 2026, signalling continued resilience in economic activity despite a high base and signs of moderation in domestic collections. According to a Moneycontrol report citing government sources, the increase was driven by what officials described as a “genuine demand expansion” across the economy, with both goods and services sectors continuing to show healthy momentum.

While the headline growth appeared modest, the underlying numbers painted a more upbeat picture. An internal assessment cited in the report indicated that taxable supply in the goods segment expanded 27 per cent year-on-year, while the services sector recorded growth of 22.2 per cent in April 2026. Since GST revenues are collected with a lag, April’s business activity directly contributed to May’s tax inflows.

The services sector, in particular, continued to power ahead, with demand spread across a broad mix of consumption and business categories. Officials noted that the trend reflects sustained economic activity even as monthly growth rates fluctuate.

Not all parts of the GST engine, however, fired at the same pace. The report pointed to some moderation in domestic collections during the month, with import-linked GST revenues helping support overall growth and offset softer demand in certain segments of the domestic economy.

The comparison was also influenced by a tough base. GST collections had touched record levels in the previous month, making May’s growth appear relatively subdued despite continued expansion in taxable transactions.

For context, gross GST collections stood at Rs 1.88 lakh crore in May 2025, while net GST revenue after refunds reached Rs 1.67 lakh crore in May 2026, up 3.3 per cent from a year earlier.

Government officials cited stable compliance levels, resilient consumption patterns and the continuing formalisation of the economy as key factors supporting collections. Economists closely track GST receipts as a high-frequency indicator because they offer a real-time glimpse into both production and consumption trends.

While May may not have delivered record-breaking numbers, it suggested that the economy’s tax pipeline remains active, with strong goods and services activity continuing to keep the GST cash register ringing.