Gross GST collections stood at ₹1.94 lakh crore in May, up 3.2% year-on-year but lower than April's ₹2.42 lakh crore collection.
Import-related GST revenues remained the key growth driver, with gross collections from imports rising 19.1%, while domestic revenue declined 2.6%.
Karnataka, Haryana, Andhra Pradesh, and Gujarat posted strong SGST growth after IGST settlement, while Delhi remained an outlier with a sharp decline in collections.
India’s gross Goods and Services Tax (GST) collections eased to ₹1.94 lakh crore in May from ₹2.42 lakh crore a month ago. Revenue was 3.2% higher than the ₹1.88 lakh crore collected in the corresponding period a year ago, according to data released on Sunday.
Net GST revenue rose 3.3% year-on-year in May to ₹1.67 lakh crore. Total refunds increased to ₹27,281 crore, up 2.6%, while cumulative refunds rose to ₹59,063 crore, registering growth of 10.9%.
“Collections for FY27 show a robust 8.8% year-on-year growth on a like-to-like basis. This is despite the steep rate cuts from September 2025 and geopolitical disruptions over the last couple of months,” said Pratik Jain, Partner at Price Waterhouse & Co.
Growth in GST collections continued to be driven by imports, with gross GST revenue from imports rising 19.1% year-on-year to ₹59,654 crore in May. Gross domestic revenue, however, declined 2.6% to ₹1.35 lakh crore.
Net customs GST collections surged 19.7% to ₹49,403 crore, while net domestic revenue fell 2.3% to ₹1.18 lakh crore.
“Imports as well as domestic consumption of products and services have expanded significantly, which reflects the resilience of the economy. Given the increase in input costs due to supply-chain disruptions, this may be an appropriate time for the government to consider providing working capital support to industry by relaxing refund provisions related to input GST, which has been accumulating for many businesses,” Jain added.
Among major states, Karnataka recorded the highest rise in pre-settlement SGST collections in May, followed by Maharashtra (up 8%), Andhra Pradesh (up 11%), and Uttar Pradesh (up 9%). Kerala’s SGST collections surged 19%, while Gujarat reported a moderate 3% increase.
Meanwhile, Delhi posted a sharp 36% decline in pre-settlement SGST collections. Tamil Nadu and Rajasthan also recorded declines, though at a more moderate pace.
Following IGST settlement, Karnataka recorded a 17% year-on-year rise in SGST collections in May. Gujarat and Andhra Pradesh reported growth of 16% each, while Kerala and Telangana saw increases of 15% and 14%, respectively. Haryana emerged as a standout performer with a 22% jump in collections. In contrast, Delhi was the only major outlier, registering a 26% decline in post-settlement SGST revenue.