India’s GST Growth Moderates to ₹1.94 Lakh Crore in May After April’s Historic Surge

Following a record-breaking collection of ₹2.42 lakh crore in April, India’s gross Goods and Services Tax revenue moderated to ₹1.94 lakh crore in May, reflecting a normalized growth trajectory.

New Delhi | 02 June 2026: India’s gross Goods and Services Tax (GST) collections experienced a seasonal moderation in May, coming in at ₹1.94 lakh crore. This follows an all-time historic high of ₹2.42 lakh crore recorded in April. Despite the sequential drop, the revenue marks a 3.2 percent year-on-year growth compared to the ₹1.88 lakh crore collected during the same month last year, demonstrating underlying economic resilience.

Data released by the Finance Ministry revealed that net GST collections, adjusted for refunds, grew by 3.3 percent to touch ₹1.67 lakh crore against ₹1.62 lakh crore in the corresponding period last year. Total tax refunds distributed during the month saw a 2.6 percent increase, amounting to ₹27,281 crore. Cumulatively, the gross GST collections for the first two months of the current fiscal year have climbed 6.2 percent to hit ₹4.37 lakh crore.

The cooling of monthly momentum is primarily attributed to a minor softening in domestic consumption after the fiscal year-end surge. However, robust revenue from international imports provided a critical cushion. Import-related integrated GST collections surged significantly, offsetting the domestic dip and sustaining the overall tax momentum.

State-wise performance showed mixed results. Kerala recorded a massive 19 percent jump in pre-settlement State GST (SGST) collections, while Karnataka, Andhra Pradesh, and Uttar Pradesh posted strong gains of 11 percent, 11 percent, and 9 percent respectively. Maharashtra and Gujarat also stayed positive with growth rates of 8 percent and 3 percent. Conversely, Delhi faced a sharp 36 percent contraction in its pre-settlement collections, while Tamil Nadu and Rajasthan experienced minor drops. Experts emphasize that despite regional disparities, the broader “GST 2.0” framework continues to yield a steady monthly baseline growth of 7 to 8 percent.

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