New Delhi, June 2 -- The Centre and states together collected Rs.1.94 trillion in gross goods and services tax (GST) revenue before adjusting for refunds in May 2026, according to data released by the finance ministry on Monday. Collections were 3.2% higher than the Rs.1.88 lakh crore collected in the same month last year, the data showed. Among states, Uttar Pradesh emerged as the top performer, registering a 13% growth in GST collections in May. However, excluding the impact of a one-time Rs.10,000-crore GST payment made by a telecom operator for spectrum allocation in May 2025, gross collections recorded an adjusted growth of 9% during the month. Compared with April, collections fell by about Rs.43,000 crore, or 18.1%. The decline from April's record GST collections is in line with seasonal trends. Gross GST revenue had touched a record Rs.2.43 lakh crore in April, the first month of FY27. April collections generally reflect economic activity in March, the last month of the financial year, when businesses accelerate sales, clear inventories, close annual accounts, and make year-end tax payments, resulting in higher tax collections. Import-related GST revenue remained a key driver of growth, rising 19.1% year-on-year to Rs.59,654 crore in May. In contrast, gross domestic GST revenue declined 2.6% to Rs.1.34 lakh crore. The healthy GST collections align with the finance ministry's assessment that the domestic economy remains resilient despite rising global uncertainties. The ministry's monthly economic review noted that high-frequency indicators, including e-way bill generation, manufacturing and services PMI readings, and electricity consumption, continued to point to sustained economic momentum. According to experts, the adjusted GST growth rate provides a more accurate picture of revenue trends by excluding the one-time telecom spectrum-related payment received in May last year. Abhishek Jain, indirect tax head & partner, KPMG, said, "May GST collections align with the global and domestic news broadly. While import GST has recorded a near 20% growth, this may also be attributed to rupee depreciation. Adjusted for the one-time telecom payment in the base, domestic collections reflect moderate growth in line with prevailing economic conditions." After refunds, net GST revenue increased 3.3% to Rs.1,66,904 crore in May from Rs.1,61,585 crore in the year-ago period. On an adjusted basis, net GST revenue grew 10.1%, according to the government data....