May GST collections up only 3%, revenue from imports jumps 19%, Pg13

Key Highlights:

• GST collections in May reached Rs 1.94 lakh crore, a 3.2% increase compared to May of last year.
• Adjusted for a one-time telecom payment last year, GST revenue grew 9% in May 2026.
• Domestic GST revenue decreased by 2.6% to Rs 1.35 lakh crore, while revenue from imports surged 19.1% to Rs 59,654 crore.
• Taxable supply of goods rose 27% in April, from Rs 31.71 lakh crore to Rs 40.1 lakh crore.

Detailed Insights:

• The Finance Ministry clarified that the previous year's GST figures were inflated by a one-time payment of Rs 10,000 crore from a telecom operator for spectrum allocation.
• The net GST revenue growth for May 2026, adjusted for the one-time payment, stood at 10.1%.
• The gross GST collected in May was 20% lower than the record Rs 2.43 lakh crore collected in April.
• Increased integrated GST revenue from imports suggests potential industrial capacity expansion, despite a rising import bill due to high energy prices and rupee depreciation.
• The rise in taxable supply of goods indicates strong domestic demand, with a 27% increase in April.

Key Concepts Involved:

• Goods and Services Tax (GST): An indirect tax levied on the supply of goods and services.
• Integrated GST (IGST): Tax levied on all inter-state supplies of goods and services.