GST collections grow 3.2% in May to ₹1.94 lakh crore
Practice PYQs on this topic
500+ questions on Economy with explanations
📌 Summary:
-
Gross GST collections rose 3.2% year-on-year to over ₹1.94 lakh crore in May 2026, up from ₹1.88 lakh crore in May 2025
-
Growth driven by improved supplies of goods and services and continued expansion in collections from imports
-
The 3.2% YoY growth is comparatively modest — below double-digit growth rates seen in earlier months — suggesting a deceleration in nominal demand
-
Collections include CGST, SGST, IGST (including on imports), and Compensation Cess
-
May 2026 collection reflects April 2026 economic activity (one-month lag between activity and tax filing)
🎯 UPSC Relevance: GS Paper 3 — Government Budgeting; indirect taxation; GST as a marker of consumption and economic momentum.
📝 Prelims Facts:
-
GST implemented from July 1, 2017 under Constitution (101st Amendment) Act, 2016
-
GST Council is a constitutional body under Article 279A — chaired by Union Finance Minister; State FMs are members
-
GST slabs: 0%, 5%, 12%, 18%, 28% (plus special rates on gold, rough diamonds, etc.)
-
April 2026 record GST collection was ₹2.37 lakh crore (typical year-end annual peak)
🔑 Key Term: Compensation Cess — A levy on certain "demerit/luxury" goods (tobacco, cars, aerated drinks) used to compensate States for revenue losses post-GST; originally for 5 years, extended to March 2026 to repay GST loans.
UPSC Classification
See PYQs related to “Economy”
Every classification tag above links to actual UPSC questions asked on that topic — with answer, explanation and elimination logic. Only in the app.