GST collections rise to ₹1.94 lakh crore in May as domestic demand remains strong

IGST collections on imports surged 20.2 per cent, driven largely by industrial raw materials and energy inputs. Adjusted net GST collections increased 10.1 per cent, while robust refund disbursements underscored the government’s efforts to improve compliance and support exporters and manufacturers.

Collection from Goods & Services Tax (GST) in May rose 3.2 per cent to over ₹1.94 lakh crore, the government reported on Monday.Collection in May is related to goods consumed and services availed in April.Broad-based growth across goods sectorsAccording to government sources, growth was broad-based across good sectors. “Goods sector taxable supply grew 26.9 per cent in April, with positive growth recorded across all 27 commodity groups, confirming the breadth and durability of domestic demand,” a source said. It rose to ₹40.10 lakh crore as against ₹31.61 lakh crore during the corresponding period of the last fiscal. “Taxable supply is a good proxy for consumption in the economy. This growth is not concentrated in any single segment but spans agriculture, manufacturing, chemicals, metals, electronics, and consumer goods simultaneously,” another source said.Services sector shows structural resilienceTalking about the services sector, sources said taxable supply grew 22.2 per cent to over ₹11.50 lakh crore in April 2026-27, with every major service category registering positive growth, demonstrating structural resilience in domestic consumption. “All major service categories are in positive growth territory,” the second source said while adding that the breadth and consistency of service growth is particularly significant because services GST is less cyclical and stickier, providing a stable and growing foundation for the overall revenue stream. The strong showing in real estate, construction, and transport further corroborates the investment and consumption narrative, he added.Import-linked IGST emerges as standout performerIGST on imports grew by a robust 20.2 per cent in May 2026, rising from ₹50,070 crore to ₹60,166 crore, reflecting strong momentum in the last few months. This is the standout performer in the revenue mix. The bulk of this import growth is driven by raw materials and intermediate inputs that feed India’s industrial production chain. “A granular review of the 1st–25th May 2026 data at the CTH level confirms that the surge is driven overwhelmingly by industrial raw materials and energy inputs,” the second source quoted above said.Refunds remain strong, net collections up 10.1%Adjusted Net GST collections (after refunds) have grown at +10.1%. Refund disbursements have remained robust, reflecting the government’s commitment to improving ease of compliance for exporters and manufacturers. “Initiatives such as automated refunds for IDS and exports have ensured that legitimate refund claims are processed efficiently and without unnecessary delay,” the second source said.Published on June 1, 2026