India’s latest GST data points to broad-based domestic economic activity across goods, services and industrial supply chains, with underlying April transactions showing resilience across sectors despite a softer headline revenue growth number and a volatile external environment.

Gross GST collections for May stood at ₹1.94 lakh crore, up 3.2% year-on-year, while net collections after refunds rose 3.3%. Adjusted for a one-time telecom spectrum payment in May 2025, underlying growth trends are stronger, with gross and net collections expanding around 9–10%.

The underlying economic activity reflected in May filings traces back largely to April, a period marked by heightened geopolitical tensions in West Asia, pressure on commodity markets and continued uncertainty in global trade conditions.

Against this backdrop, taxable supply data shows broad-based expansion across both goods and services.

Goods sector taxable supply rose 26.9%, increasing from ₹31.61 lakh crore to ₹40.10 lakh crore, with all 27 commodity groups recording positive growth. Activity expanded across agriculture, chemicals, pharmaceuticals, metals, machinery, automobiles, electronics and consumer-linked sectors. Strong growth in computers, telecom equipment, electric machinery and transport equipment points to continued momentum in manufacturing and formal sector production.

Services activity remained similarly broad-based. Taxable supply in services grew 22.2% year-on-year to ₹11.5 lakh crore, with growth recorded across construction, transport, professional services, telecom, hospitality and real estate. Movement in construction, logistics and business services adds to signals of sustained domestic consumption and investment activity.

Import-linked GST collections emerged as another key feature of the month. IGST on imports grew over 20%, led largely by industrial raw materials and intermediate goods. Electronic processing units, memory chips, copper inputs, coal and lithium-ion batteries were among the categories registering strong increases, reflecting activity across manufacturing, power, telecom, electronics, renewable energy and electric mobility supply chains.

Refund disbursements also remained elevated, with total refunds rising 10.9% on a year-to-date basis, maintaining liquidity support for exporters and manufacturers even as collections strengthened.

The May GST data arrives against a backdrop of heightened global uncertainty. In its Monthly Economic Review released over the weekend, the finance ministry described India’s near-term outlook as one of “cautious resilience”, supported by domestic fundamentals but exposed to risks from external developments, energy prices, exchange-rate pressures and the possibility of a weaker monsoon. The ministry also flagged disruption risks around the Strait of Hormuz as a key variable for India’s inflation and external outlook.

Published on: Jun 1, 2026 12:13 PM IST