GST collections in May 2026 reached approximately ₹1.94 lakh crore, a 3.2% increase over the previous year. An increase of over 20% in import taxes provided a strong boost to government revenues. Imports of electronics, lithium-ion batteries, coal, and other industrial products have driven a sharp increase in tax collections. Meanwhile, the service sector and business activity also saw strong growth.
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The impact of strengthening business and economic activity in the country is now being reflected in government tax collections. GST collections increased to approximately ₹1.94 lakh crore in May 2026, representing a 3.2 percent increase over the previous year. According to the government, the strong revenue collection was driven by a significant increase in import taxes.
Although domestic GST collections have slowed slightly, the overall economy remains strong. Imports of electronics, batteries, coal, and other industrial goods have increased, resulting in higher tax revenue for the government.
Government revenue increased through imports
In May, IGST collected on imports increased by 20.2 percent to ₹60,166 crore. Imports of electronic parts, copper, aluminum scrap, lithium-ion batteries, and coal saw increases.
Experts say the growing demand for these goods indicates that manufacturing and industrial activity in the country remains strong, particularly driven by rising demand in the electric vehicle and technology sectors.
The service sector also showed strength
The services sector also performed well. Taxable service activity in the service sector increased by 22.2 percent in April. Real estate, professional services, and other business services saw strong growth.
Taxable supply of goods also increased by 26.9 percent. According to the government, growth was recorded across all 27 major commodity groups. This clearly indicates strong market demand and continued growth.
GST collection remained strong even after refunds
GST refunds increased by 2.6 percent to ₹27,281 crore in May. The government continues to expedite the processing of refund claims for companies and businesses, providing relief to them.
The government’s net GST collection, after refunds, stood at ₹1.66 lakh crore. This is approximately 10.1 percent higher than last year. Even if last year’s one-time spectrum payment is excluded, GST collections still increased by approximately 9 percent.
The financial year started strong
Total GST collections reached ₹4.37 lakh crore in the first two months of the fiscal year 2026-27, April and May. This indicates that economic activity in the country remains strong and the government’s tax collection is steadily increasing.
Experts believe that strong imports, rising industrial activity, and a boom in the services sector could support GST collections in the coming months. The May figures are seen as a sign of the Indian economy’s strength.
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