GST collections rise 3.2% to ₹1.94 lakh crore in May; import-led revenues drive growth
Officials said base income growth was close to 9% after excluding the one-time ₹10,000 crore spectrum-related payment in May 2025 that inflated the base.
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The main driver of growth was the increase in imports of raw materials and intermediate goods. Integrated GST rose 19.1% to ₹59,654 crore, driven by imports of electronic components, copper inputs and lithium-ion batteries.
India’s goods imports in April increased by 10% compared to the same period last year, reaching 71.9 billion dollars.
“Import-based income growth continues to outpace domestic transactions, which may indicate some softness in consumption, possibly reflecting a moderation in discretionary spending amid ongoing geopolitical uncertainties,” said Pratik Jain, partner at Price Waterhouse & Co.
Abhishek Jain, head and partner, indirect tax, KPMG, attributed the increase in GST on imports to the depreciation of the rupee. “Import GST has registered a growth of close to 20%, which can also be attributed to the depreciation of the rupee,” he said, adding that domestic collections reflect moderate growth in line with economic conditions, considering one-time telecom payments.
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Government officials added that the high import figures reflect confidence among businesses in sustainable domestic demand conditions and show that India’s industrial order pipeline remains healthy.
“Raw material imports are a leading indicator of demand for manufacturing activities,” officials said.
Gross Central GST (CGST) collection from domestic transactions in the reported month was ₹37,397 crore and state GST (SGST) was ₹45,143 crore. Net collections stood at ₹1.67 lakh crore, up 3.3% year-on-year, and refunds rose 2.6% to ₹27,281 crore.
But officials downplayed the slowdown in domestic demand, adding that taxable supply data for both goods and services reflected healthy double-digit growth.
