India’s Gross GST collections moderate to Rs 1.94 lakh crore in May 2026

India’s gross Goods and Services Tax (GST) collections moderated to Rs 1.94 lakh crore in May 2026, reflecting a slowdown in growth compared to the previous month, according to official data.

Despite the moderation, GST revenues remained close to the Rs 2 lakh crore mark, indicating continued strength in economic activity and tax compliance across sectors. The collections, however, were lower than the record-high figures reported in April, which had been boosted by year-end business transactions and tax settlements.

Experts said the softer numbers were largely expected due to the high base effect and seasonal adjustments following the financial year-end surge. They noted that domestic consumption, manufacturing activity, and services sector performance continue to support GST revenues.

The government has been focusing on improving compliance through technology-driven monitoring, e-invoicing systems, and tighter checks on tax evasion. These measures have contributed to sustained growth in indirect tax collections over the past few years.

Economists believe that maintaining GST collections near the Rs 2 lakh crore level remains a positive indicator for the Indian economy, even as global uncertainties, geopolitical tensions, and fluctuating crude oil prices continue to affect market sentiment.

The latest GST figures are expected to be closely watched by policymakers as they assess economic momentum and revenue trends in the first quarter of the new financial year.