India’s gross GST collections ease to Rs 1.94 lakh crore in May from April record as growth slows to 3.2%
Net GST revenue for May rose 3.3% year-on-year to Rs 1.67 billion compared to Rs 1.62 billion in May 2025. Total refunds rose 2.6% to Rs27.281 billion during the month, while cumulative refunds for the financial year so far rose 10.9% to Rs59.063 billion.
Also Read: India’s gross GST collections rose 8.7% to record Rs 2.42 lakh crore in April
Growth in collections continued to be driven by imports. Gross GST revenue from imports rose 19.1% year-on-year to Rs 59,654 billion in May, while gross domestic income fell 2.6% to Rs 1.35 billion. On a net basis, customs GST collections increased by 19.7% to Rs 49,403 billion, while net domestic revenue fell by 2.3% to Rs 1.18 billion.
In the first two months of the financial year, gross GST collections rose 6.2% to Rs 4.37 lakh crore, while net GST revenue rose 5.5% to Rs 3.78 lakh crore. During April-May, gross domestic income rose 1.3% year-on-year to Rs 3.19 lakh crore, while gross import revenue rose 22.3% to Rs 1.17 lakh crore; This underlined the continued contribution of import-related taxes to overall collections.
State-by-state data showed different trends. Among major states, Karnataka recorded an 11% increase in pre-payment SGST collections in May, while Maharashtra, Andhra Pradesh and Uttar Pradesh recorded a growth of 8%, 11% and 9% respectively. While Kerala saw a strong increase of 19%, Gujarat’s collections increased by 3%. In contrast, Delhi witnessed a sharp decline of 36% in pre-payment SGST collections, while Tamil Nadu and Rajasthan reported moderate contractions.
Following the IGST agreement, Karnataka’s SGST revenue increased by 17% year-on-year in May, Gujarat by 16%, Andhra Pradesh by 16%, Kerala by 15% and Telangana by 14%. While Haryana recorded a strong increase of 22%, Delhi remained an outlier with post-settlement collections declining by 26%.Also Read: India guides boat through risky channel between war clouds and El Niño
Latest data shows that although domestic consumption-related tax collections softened during the month, strong import-related revenues continued to support the overall GST increase at the start of the financial year.
