GST Revenue Hits ₹1.94 Lakh Crore in May 2026 on Strong Domestic Demand

India’s Goods and Services Tax (GST) collections showed the upward trend in the month of May 2026, as total gross revenue crossed the ₹1.94 trillion. It showcases the strong economic activity and the robust domestic consumption. The rise in the Indian economy signals the resilience but it also highlights the tax compliance and the effectiveness of the indirect tax system.

GST Collections In May 2026

According to official data, total gross GST collections in May 2026 stood at ₹1.94 trillion (₹1.94 lakh crore) and it registered the 3.2% increase as compared to ₹1.88 trillion collected in May 2025.

This growth comes after the record-breaking GST collection of ₹2.43 trillion in April 2026, which remains as the highest monthly GST revenue since the implementation of the tax regime.

Breakdown of GST Revenue Collections

The GST system comprises with the different components which are collected by the Centre and States.

GST Collection Components in May 2026

Component Collection

• Central Goods and Service Tax: ₹37,397 crore
• State Goods and Service Tax: ₹45,143 crore
• Integrated Goods and Services Tax (Domestic): ₹51,990 crore
• Integrated Goods and Services Tax (Imports): ₹59,654 cror

The figures showed the balanced contribution from the domestic transactions and international trade and supporting the overall revenue growth.

Strong Domestic Demand Drives GST Growth

One of the most major highlights of the latest GST data is the strong growth in the taxable supplies across the economy. Taxable supplies of goods had recorded the growth of 26.9% and indicates the robust consumer spending and increased market activity.

Similarly, the taxable supplies in the services sector increased around 22.2%, reflecting the continued expansion in sectors such as,

• Financial services
• Hospitality
• Transportation
• Information technology
• Professional services

This data suggests that domestic demand remains as the key driver of India’s economic growth.

Rising Import Collections

Another important trend in the May GST figures is the sharp increase in to the tax collections from imports. Integrated GST (IGST) collections on imports rose by 19.1% to the ₹59,654 crore.

Higher import-related tax collections generally indicate the,

• Increased industrial production.
• Greater demand for raw materials.
• Expansion in manufacturing activities.
• Stronger investment activity.

GST Refunds and Net Revenue Position

GST refunds are also an important component of the tax system as they support the exporters and businesses by improving liquidity.

In May 2026,

• GST refunds increased by the 2.6%
• Total refunds given amounted to the ₹27,281 crore