India’s GST collections rise 13.9% in June to about ₹1.95 lakh crore

GST collections surged by 13.9% to Rs 1.94 lakh crore, the fastest in eight months, driven by a significant jump in import taxes on commodities like crude and fertilizers. While domestic collections saw a modest 6.5% rise, imports contributed substantially. This indicates robust manufacturing and import activity, though some states experienced significant drops in revenue. Experts suggest policy recalibration to boost domestic manufacturing.

As per the data released by the finance ministry, the GST revenues grew over Rs 1.94 lakh crore in May and Rs 1.71 lakh crore in June 2025.

India's GST collections surged 13.9% to Rs 1.95 lakh crore in June 2026, fueled by a significant 34.6% jump in import tax revenues. This robust growth, despite global uncertainties, highlights the maturing and resilient nature of India's tax system. Increased refund disbursements also supported business liquidity, demonstrating improved tax administration and a predictable revenue framework.

India’s Goods and Services Tax (GST) collections recorded their fastest growth in 13 months in June, reflecting a strong uptick in revenues driven primarily by higher taxes on imports.Gross GST collections rose 13.9% year-on-year to ₹1.95 lakh crore in June 2026, compared with ₹1.71 lakh crore in the same month last year. \The latest print also shows a significant improvement over May 2026, when collections had grown by just 3.2% year-on-year, highlighting a sharp recovery in monthly tax inflows.The June figure marks the strongest annual expansion since May 2025, when GST revenues had grown 16.4%.A key driver of the surge was import-related GST, which rose sharply by 34.6% year-on-year to ₹60,038 crore from ₹44,600 crore a year earlier. This indicates that external trade flows played a major role in boosting overall collections during the month.In contrast, domestic GST collections grew at a more modest pace of 6.5% to ₹1.35 lakh crore, suggesting that internal consumption and production activity contributed less to the overall increase compared to imports.After accounting for refunds, net GST revenue rose 11.2% year-on-year to ₹1.62 lakh crore. Next GST Council Meeting To Push Process Reforms, Tackle Inverted Duty Issues However, refund outflows remained high, increasing 29.1% to ₹32,436 crore, which partially offset the gains in gross collections.On a cumulative basis, GST revenues for the April–June 2026 quarter increased 8.4% year-on-year to ₹6.32 lakh crore on a gross basis, while net collections rose 7.1% to ₹5.40 lakh crore. This indicates a stable but uneven start to the fiscal year.At the state level, Uttar Pradesh led growth with a 19% rise in GST collections to ₹9,165 crore. Assam, Punjab, and Gujarat also posted healthy growth of 17%, 14%, and 12% respectively.Maharashtra, the largest GST contributor, recorded a 9% increase to ₹30,714 crore. Karnataka and Delhi reported growth of 10% and 8% respectively.However, some states underperformed. Rajasthan and Madhya Pradesh saw declines of 5% each, Tamil Nadu slipped 2%, while Jharkhand recorded a sharper 16% contraction in collections.Overall, the data points to strong import-led momentum in GST revenues, even as domestic growth remains relatively moderate.

Central GST came in at Rs 37,376 crore, up 8% year-on-year. State GST was Rs 45,116 crore, up 4%. Integrated GST from domestic transactions stood at Rs 52,282 crore, a 7% increase.