India's GST collections rise 3.2% in May to 1.94 trillion

India’s GST takings held above the 1.9 trillion mark in May, rising 3.2% year on year to more than 1.94 trillion. The headline number pointed less to a surge in one-off spending than to a steadier mix of domestic activity, service-sector resilience and firm import-linked flows.

The composition of the tax receipt told the sharper story. CGST from domestic transactions came in at 37,397 crore, SGST at 45,143 crore and IGST at 51,990 crore. Taxable supplies of goods rose 26.9% in May, while taxable supplies of services increased 22.2%, suggesting that consumption and business activity remained resilient even as the economy absorbed higher input costs and external uncertainty.

Import-related collections added another layer of strength. IGST paid on imports rose 19.1% to 59,654 crore, a sign that industrial demand and trade flows were still supporting revenue. After refunds, net GST revenue stood at about 1.67 trillion, up 3.3% from a year earlier. The gap between gross and net collections reflected the way GST data is recorded across the GST portal, customs portal and later settlement to states and Union territories.

May’s result also needs to be read against April’s record haul of 2,42,702 crore, which remains the benchmark for the current fiscal year. April’s domestic transaction revenue reached 1,85,122 crore, while import-linked IGST was 57,580 crore. May was clearly softer than that peak, but the drop was not sharp enough to suggest a loss of momentum.

The comparison with last year is also instructive. Gross GST revenue in May 2025 was 2,01,050 crore, which means the latest print was lower in absolute terms but still comfortably above the 1.9 trillion threshold. That matters for the government’s revenue math. The Ministry of Finance has said GST collections in 2024-25 reached a record 22.08 lakh crore, up 9.4% from the previous year, reinforcing the tax’s role in formalisation and revenue mobilisation.

For policymakers, the May numbers offer a mixed but broadly encouraging signal. They do not show an economy racing ahead, yet they do indicate that tax buoyancy is holding up despite global volatility, geopolitical pressure and the usual strain of uneven inflation. For the next policy cycle, that gives the government more fiscal room, and a stronger case that domestic demand is still carrying a meaningful share of India’s growth story.