GST collections rise 3.2% to ₹1.94 lakh crore in May; import revenues surge 19%

India's gross Goods and Services Tax (GST) collections rose 3.2% year-on-year (YoY) to over ₹1.94 lakh crore in May, driven by higher taxable supplies of goods and services as well as strong growth in import-related revenues, according to government data released on Monday. 

Gross GST collections stood at ₹1.88 lakh crore in May 2025. Of the total collections, gross Central GST (CGST) from domestic transactions amounted to ₹37,397 crore while State GST (SGST) collections stood at ₹45,143 crore. Integrated GST (IGST) collections reached ₹51,990 crore. 

The data showed robust economic activity during the month. Taxable supplies of goods increased 26.9% YoY, reflecting healthy domestic demand while taxable supplies of services grew 22.2%, indicating continued resilience in consumption and economic activity. 

Import-related tax collections

Import-related tax collections remained a key growth driver. IGST collections from imports rose 19.1% to ₹59,654 crore in May, signalling continued expansion in industrial activity and trade flows. 

GST refunds during the month increased 2.6% to ₹27,281 crore. After adjusting for refunds, net GST revenues rose 3.3% year-on-year to around ₹1.67 lakh crore. 

The latest collections follow a record GST mop-up of ₹2.43 lakh crore in April, the highest since the tax regime was introduced in July 2017. 

Commenting on the numbers, Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat, said the headline growth figure understates the underlying strength in collections due to a one-off payment received in May last year. 

"May GST collections of ₹1.94 lakh crore present a far stronger picture than the headline 3.2% growth suggests. The comparison is distorted by a one-time GST payment of nearly ₹10,000 crore received in May 2025 on account of spectrum allocation. Adjusting for this exceptional item, gross GST collections have actually grown by 9%, domestic GST revenues by 5%, and net GST collections by over 10%," he said. 

Mishra noted that collections have remained close to the ₹2 lakh crore mark even without any extraordinary revenue support this year, highlighting the growing maturity and stability of the GST framework. 

He added that import-related revenues, which grew 19.1%, significantly outpaced overall GST growth, reflecting resilience in trade activity and imports, even as domestic demand expanded at a more moderate pace.

State level trend remained mixed 

At the state level, the trend remained mixed. Uttar Pradesh recorded a robust 13% growth in GST collections while Haryana and Telangana continued to post healthy gains. However, collections from major economic centres such as Delhi, Tamil Nadu, and West Bengal witnessed moderation. 

According to Mishra, the May figures indicate sustained revenue buoyancy, although growth is becoming increasingly uneven across regions and sectors. 

Pratik Jain, Partner, Price Waterhouse & Co LLP, said, "Collectively for April and May, the collections show a robust 8.8% YoY growth on like to like basis. This is despite the steep rate cuts from September 2025 and geopolitical disruptions for last couple of months. Imports as well as domestic consumption of products and services have expanded significantly, which shows our economic resilience. Given the increase in input costs due to supply chain issues, this might be a right time for Government to consider providing working capital support to industry by relaxing refund provisions with respect to input GST, which has been accumulating for many businesses."