<p>New Delhi: Revenue collection from<a href="https://www.deccanherald.com/tags/gst"> goods and services tax</a> (GST) slipped to Rs 1.94 lakh crore in May from a record Rs 2.42 lakh crore registered in the previous month, as per official data released on Monday.</p><p>However, on a year-on-year basis the gross GST revenue collection was 3.2 per cent higher in May over Rs 1.88 lakh crore recorded in May 2025. </p><p>Vivek Jalan, Partner, <a href="https://www.deccanherald.com/tags/tax">Tax </a>Connect Advisory Services, said the GST performance in May 2026 reflects both challenges and opportunities.</p><p>Gross domestic GST collections registered a degrowth of 2.6 per cent year-on-year, while net domestic GST revenues dipped by 2.3 per cent and domestic refunds contracted by 4.3 per cent. However, this was more than offset by strong growth in GST collections on imports, with IGST from imports rising 19.1 per cent in May and nearly 30 per cent cumulatively this year.</p>.GST revenue hit record high of Rs 2.43 lakh crore in April despite Iran war.<p>“This resilience in import-linked revenues has helped overall net GST collections grow by 5.5 per cent year-on-year, underscoring the strength of India’s external trade flows,” said Jalan.</p><p>Despite the subdued May collections, the government is hopeful to meet Rs 10.19 lakh crore GST revenue target for the current financial year, official sources said.</p><p>On a cumulative basis for the first two months of the current financial year, the gross GST collections stand at Rs 4,36,887 crore against Rs 4,11,437 crore in the corresponding period of the last year, registering growth of 6.2 per cent.</p><p>“This cumulative YoY performance is healthy and in the right direction to achieve the full-year GST revenue target,” a government source said.</p><p>On a month-on-month basis, the moderation in collections compared to April is in line with established seasonal patterns, as April typically captures higher economic activity linked to year-end transactions in March, said Karthik Mani, Partner, BDO India.</p><p>“Overall, the data suggests a cautious but steady recovery, with the current dependence on import-driven growth underscoring the need for a broader revival in domestic consumption to sustain momentum in GST collections going forward,” Mani added.</p><p>Gross Central GST (CGST) collection from domestic transactions during May stood at Rs 37,397 crore, State GST (SGST) at Rs 45,143 crore and Integrated GST (IGST) at Rs 51,990 crore.</p><p>Taxable supplies of goods grew 26.9 per cent during the month, reflecting domestic demand, while the same for the services sector grew 22.2 per cent, demonstrating structural resilience in domestic consumption, SBI Research said in a note.</p><p>IGST collection from imports rose 19.1 per cent during May to Rs 59,654 crore, signalling expansion in industrial capacity. After adjusting refunds, net GST revenues in May rose</p><p>3.3 per cent to about Rs 1.67 lakh crore.</p>
<p>New Delhi: Revenue collection from<a href="https://www.deccanherald.com/tags/gst"> goods and services tax</a> (GST) slipped to Rs 1.94 lakh crore in May from a record Rs 2.42 lakh crore registered in the previous month, as per official data released on Monday.</p><p>However, on a year-on-year basis the gross GST revenue collection was 3.2 per cent higher in May over Rs 1.88 lakh crore recorded in May 2025. </p><p>Vivek Jalan, Partner, <a href="https://www.deccanherald.com/tags/tax">Tax </a>Connect Advisory Services, said the GST performance in May 2026 reflects both challenges and opportunities.</p><p>Gross domestic GST collections registered a degrowth of 2.6 per cent year-on-year, while net domestic GST revenues dipped by 2.3 per cent and domestic refunds contracted by 4.3 per cent. However, this was more than offset by strong growth in GST collections on imports, with IGST from imports rising 19.1 per cent in May and nearly 30 per cent cumulatively this year.</p>.GST revenue hit record high of Rs 2.43 lakh crore in April despite Iran war.<p>“This resilience in import-linked revenues has helped overall net GST collections grow by 5.5 per cent year-on-year, underscoring the strength of India’s external trade flows,” said Jalan.</p><p>Despite the subdued May collections, the government is hopeful to meet Rs 10.19 lakh crore GST revenue target for the current financial year, official sources said.</p><p>On a cumulative basis for the first two months of the current financial year, the gross GST collections stand at Rs 4,36,887 crore against Rs 4,11,437 crore in the corresponding period of the last year, registering growth of 6.2 per cent.</p><p>“This cumulative YoY performance is healthy and in the right direction to achieve the full-year GST revenue target,” a government source said.</p><p>On a month-on-month basis, the moderation in collections compared to April is in line with established seasonal patterns, as April typically captures higher economic activity linked to year-end transactions in March, said Karthik Mani, Partner, BDO India.</p><p>“Overall, the data suggests a cautious but steady recovery, with the current dependence on import-driven growth underscoring the need for a broader revival in domestic consumption to sustain momentum in GST collections going forward,” Mani added.</p><p>Gross Central GST (CGST) collection from domestic transactions during May stood at Rs 37,397 crore, State GST (SGST) at Rs 45,143 crore and Integrated GST (IGST) at Rs 51,990 crore.</p><p>Taxable supplies of goods grew 26.9 per cent during the month, reflecting domestic demand, while the same for the services sector grew 22.2 per cent, demonstrating structural resilience in domestic consumption, SBI Research said in a note.</p><p>IGST collection from imports rose 19.1 per cent during May to Rs 59,654 crore, signalling expansion in industrial capacity. After adjusting refunds, net GST revenues in May rose</p><p>3.3 per cent to about Rs 1.67 lakh crore.</p>