New Delhi: The Centre and states together collected ₹1.94 trillion in gross goods and services tax (GST) revenue before adjusting for refunds in May 2026, according to data released by the finance ministry on Monday.
Collections were 3.2% higher than the ₹1.88 trillion collected in the same month last year, the data showed. Among states, Uttar Pradesh emerged as the top performer, registering a 13% growth in GST collections in May.
However, excluding the impact of a one-time ₹10,000-crore GST payment made by a telecom operator for spectrum allocation in May 2025, gross collections recorded an adjusted growth of 9% during the month. Compared with April, collections fell by about ₹43,000 crore, or 18.1%.
The decline from April’s record is in line with seasonal trends. Gross GST revenue had touched a record ₹2.43 trillion in April, the first month of FY27. April collections generally reflect economic activity in March, the last month of the financial year, when businesses accelerate sales, clear inventories, close annual accounts, and make year-end tax payments, resulting in higher tax collections.
Import-related GST revenue remained a key driver of growth, rising 19.1% year-on-year to ₹59,654 crore in May. In contrast, gross domestic GST revenue declined 2.6% to ₹1.34 trillion.
The healthy GST collections align with the finance ministry’s assessment that the domestic economy remains resilient despite rising global uncertainties. The ministry’s monthly economic review noted that high-frequency indicators, including e-way bill generation, manufacturing and services , and electricity consumption, continued to point to sustained economic momentum.
According to experts, the adjusted GST growth rate provides a more accurate picture of revenue trends by excluding the one-time telecom spectrum-related payment received in May last year.
Abhishek Jain, indirect tax head & partner, KPMG, said, “May GST collections align with the global and domestic news broadly. 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.”
After refunds, net GST revenue increased 3.3% to ₹1,66,904 crore in May from ₹1,61,585 crore in the year-ago period. On an adjusted basis, net GST revenue grew 10.1%, according to the government data.
Total refunds issued during the month rose 2.6% to ₹27,281 crore. Domestic refunds declined 4.3% to ₹17,030 crore, while export-related refunds processed through ICEGATE increased 16.6% to ₹10,250 crore.
ICEGATE, which stands for Indian Customs Electronic Gateway, is the online portal of Indian Customs that facilitates the electronic filing and processing of import-export documents, customs clearances, and the disbursement of export-related GST refunds.
The May collections come amid concerns over the impact of rising global energy prices following the . The Centre’s FY27 GST revenue target and other budget projections were made on 1 February, before the war began on 28 February. It, therefore, remains to be seen how consumption of goods and services is affected by the rise in global energy prices. GST is a tax on consumption.
“The May GST numbers suggest that underlying revenue growth remains healthy despite the high base effect created by the one-time telecom spectrum-related payment received last year. The strong growth in import-related collections and the adjusted GST growth of 9% indicate continued resilience in economic activity and improving tax compliance,” said Abhash Kumar, economist and assistant professor at Delhi University.
Among major states, Uttar Pradesh recorded the highest growth in GST collections, with revenue rising 13% to ₹8,728 crore in May. Haryana posted an 8% increase to ₹10,217 crore, while Telangana reported a 6% rise to ₹5,045 crore. Gujarat and Karnataka recorded marginal growth of 1% each, while Maharashtra, the country’s largest GST-contributing state, reported collections of ₹29,141 crore, broadly unchanged from a year ago.
Meanwhile, Delhi’s GST revenue fell 17% to ₹8,525 crore, Tamil Nadu’s collections declined 15% to ₹9,834 crore, while Rajasthan and West Bengal reported declines of 11% and 9%, respectively.
The first two months of FY27 also showed steady growth in indirect tax collections. Gross GST revenue during April-May rose 6.2% to ₹4.37 trillion from ₹4.11 trillion in the corresponding period of the previous fiscal, while net GST revenue increased 5.5% to ₹3.78 trillion.