India’s GST revenue growth moderated in May, with both gross and net collections expanding at a slower pace than in recent months. Gross GST collections stood at Rs 1.94 lakh crore in May 2026, while net collections after refunds came in at Rs 1.67 lakh crore, registering year-on-year growth of 3.2%. The moderation follows April’s record GST collection of Rs 2.42 lakh crore. Refunds issued during May rose 2.6% year-on-year to Rs 27,281 crore.
However, government officials maintain that the softer headline numbers do not indicate any broad-based slowdown in economic activity. GST collections in May largely reflect transactions undertaken in April, when consumption and business activity remained robust, they said. Officials also pointed to a high base effect. GST revenues in May 2025 had included a one-time payment of around Rs 10,000 crore by a telecom operator towards spectrum allocation, boosting domestic collections.
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With no comparable payment this year, officials said the headline growth figure understates the underlying strength of GST revenues. Supporting this view, taxable supplies in the goods sector rose 26.9% year-on-year to Rs 40.1 lakh crore in April from Rs 31.61 lakh crore a year earlier. All 27 commodity groups recorded positive growth, indicating broad-based demand across agriculture, manufacturing, chemicals, metals, electronics and consumer goods.
The services sector also remained resilient. Taxable supplies grew 22.2% year-on-year to over Rs 11.5 lakh crore in April, with all major service categories registering positive growth. Real estate, construction, transportation and telecommunications were among the key contributors, reinforcing the broader investment and consumption narrative.
Import-linked IGST emerged as another bright spot. Collections from IGST on imports increased 20.2% year-on-year to Rs 60,166 crore in May from Rs 50,070 crore a year earlier. Officials attributed the rise largely to imports of industrial raw materials, intermediate goods and energy products, suggesting sustained momentum in domestic manufacturing activity.
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While headline GST growth remained modest, officials noted that adjusted net GST collections, after accounting for refunds and the elevated base effect, grew 10.1% year-on-year. They added that faster refund processing and greater automation have improved liquidity for exporters and manufacturers while maintaining revenue buoyancy. The latest data comes after a period of volatility in GST revenues. Collections had slowed sharply in November 2025 following GST rate rationalisation and lower cess collections.
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