The gross Goods and Services Tax (GST) revenue in May rose 3.2% year-on-year to ₹1.94 lakh crore from ₹1.88 lakh crore in the same month last year. The base period, however, included a one-time telecom-related payment of approximately ₹10,000 crore.
Releasing the monthly data on Monday, the Union finance ministry said that excluding the exceptional payment received in May 2025, gross GST collections in May 2026 would have registered a growth of about 9%.
While overall GST collections increased, gross domestic GST revenue contracted 2.6% to ₹1,34,530 crore in May 2026 from ₹1,38,102 crore a year earlier. According to the ministry, the decline was largely due to the one-time telecom-related payment in the base period, while revenues from imports rose sharply during the month.
After refunds, net GST collection in May 2026 stood at ₹1,66,904 crore, up 3.3% from ₹1,61,585 crore in the same month last year.
“May 2025 GST Revenue includes ₹~10,000 crore of one-time payment made by a telecom operator for spectrum allocation. Adjusted for this one-time payment, Gross GST Revenue grew 9% in May 2026 with Domestic Gross GST growth being 5%. Adjusted Net GST Revenue growth in May 2026 was 10.1%. With no one-time payment in May 2026, adjusted growth is therefore the right measure to evaluate the GST performance for the Month,” the ministry said in an explanatory note accompanying the data.
Deloitte India partner and indirect tax leader Mahesh Jaising said, “On a year-on-year basis, May collections show a growth of 3.2%; however, adjusting for the one-time telecom-related payment in the base period, the underlying growth is closer to 9%, indicating sustained economic activity.”
On the sharp sequential decline in gross revenue, he said: “Gross GST collections stood at about ₹1.94 lakh crore in May, compared to ₹2.43 lakh crore in April 2026, with the latter typically benefiting from year-end settlements and seasonal strength.”
Gross GST collection in April 2026 was an all-time high.
“While the headline 3.2% growth looks modest, normalizing the data for last year’s one-time spectrum base effect reveals a healthy underlying revenue growth of nearly 10%. This confirms that India’s core consumption and industrial momentum remain resilient against global headwinds,” said EY India partner Saurabh Agarwal.
Crucially, the 19.1% surge in GST from imports significantly outpaces domestic collections, he said.
“Rather than indicating an adverse import reliance, this sharp uptick suggests that Indian businesses are actively procuring intermediate components and capital goods in anticipation of upcoming demand—a classic sign of an accelerating private investment cycle,” he said.
According to the official data, while gross GST revenues from domestic activities dipped 2.6% on an annualized basis in May 2026, revenues from imports jumped 19.1% to ₹59,654 crore.
KPMG indirect tax head & partner Abhishek Jain said: “While import GST has recorded a near 20% growth, this may also be attributed to rupee depreciation.”
“Adjusted for the one-time telecom payment in the base, domestic collections reflect moderate growth in line with prevailing economic conditions. It is heartening to see the continued momentum in export IGST (integrated GST) refunds, which plays an important role in supporting exporter liquidity and keeping India’s supply chains competitive.” While domestic refunds saw a negative growth of 4.3% at ₹17,030 crore, IGST refunds saw a 16.6% annualized jump to ₹10,250 crore in May this year. IGST is levied on imports of goods and services into the country as well as inter-state supplies.