GST Collections Rise to ₹1.94 Lakh Crore in May, Signalling Steady Economic Momentum

India’s Goods and Services Tax (GST) collections remained on a strong footing in May, with gross revenues rising 3.2 per cent year-on-year to ₹1.94 lakh crore , reflecting steady economic activity, resilient consumer demand and improving tax compliance across the country.

According to data released by the Finance Ministry on Monday, gross GST collections stood at ₹1,94,184 crore in May 2026, up from ₹1,88,172 crore in the corresponding month last year. After accounting for refunds worth ₹27,281 crore , net GST revenues increased 3.3 per cent to approximately ₹1.67 lakh crore .

Although the latest collections were lower than the record ₹2.43 lakh crore collected in April, economists say the figures continue to underline the strength of India’s economy. GST collections are widely regarded as a key indicator of economic health as they provide real-time insights into consumer spending, business transactions, industrial production and overall economic activity. Higher collections also improve the government’s fiscal position, giving it greater room for infrastructure development and welfare spending.

The data showed strong growth in both goods and services. Taxable supplies of goods expanded by 26.9 per cent , while taxable supplies in the services sector rose 22.2 per cent , indicating sustained domestic demand and healthy commercial activity.

Among the various tax components, Central GST (CGST) collections stood at ₹37,397 crore , State GST (SGST) collections at ₹45,143 crore , and Integrated GST (IGST) from domestic transactions at ₹51,990 crore .

A significant contributor to the increase was import-related revenue. IGST collections from imports surged 19.1 per cent to ₹59,654 crore , suggesting stronger industrial demand and rising imports of raw materials and capital goods. The trend is often viewed as a sign of expanding manufacturing activity and business investment.

Analysts also pointed out that the year-on-year comparison was influenced by a high base in May 2025, when a one-time telecom spectrum payment had boosted tax collections. Excluding that factor, the underlying growth momentum appears stronger.

State-wise, Maharashtra remained the largest contributor to the GST kitty, followed by Karnataka and Gujarat . The sustained growth in collections during the first two months of the financial year reinforces confidence in the economy, highlighting continued formalisation, stronger compliance and resilient consumption despite global economic uncertainties.