May GST collections grow just 3% to Rs 1.94L cr; domestic revenue dips 2.6% as consumption softens
Domestic GST fell 2.6% to Rs 1.35 lakh crore in May even as taxable supply of goods rose 27% and services 22%, hinting at margin and pricing pressure post GST 2.0 rate cuts on 375+ items. Imports IGST jumped 19.1% to Rs 59,654 crore, signalling stronger inbound demand than domestic offtake.
What happened
GST Council · May GST collections rose just 3.2% YoY to Rs 1.94 lakh crore, with domestic revenue down 2.6%, hinting at consumption softness despite GST 2.0
Key facts
- Rs 1.94 lakh crore May GST
- 3.2% YoY growth
- Domestic GST -2.6% at Rs 1.35 lakh crore
- Taxable supply of goods +27%
- Services taxable supply +22% at Rs 11.5 lakh crore
- Imports IGST +19.1% at Rs 59,654 crore
- GST 2.0 cuts on 375+ items effective Sept 22, 2025
Why this matters
Margin pressure on domestic-only players post GST 2.0 creates a window to pursue tuck-in acquisitions of sub-scale regional brands at compressed multiples before pricing stabilizes.