India's gross GST revenue demonstrated strong growth in June 2026, rising 14% year-on-year to ₹1,94,812 crore, according to the latest provisional data released by the finance ministry. On a net basis after refunds, collections reached ₹1,62,377 crore, representing an 11.2% increase compared to the same period last year. The June figure marks the fastest pace of growth in eight months, with the spike driven by sharp increases in international prices of crude oil, fertiliser and other commodities. The total refunds for the month stood at ₹32,436 crore, marking a significant 29.1% increase from ₹25,121 crore in June 2025. As per official government data released on Wednesday, the increase in GST revenues reflects continued strength in economic activity and tax compliance across the country, with net GST collections from imports surging nearly 35% to over ₹60,000 crore.
The revenue composition showed varied performance across different GST categories. Central GST contributed ₹37,376 crore, growing 8.2% year-on-year, while State GST reached ₹45,116 crore, up 4.3%. Integrated GST from domestic transactions stood at ₹52,282 crore, representing a 7% increase. However, the standout performer was IGST on imports, which surged 34.6% to ₹60,038 crore from ₹44,600 crore a year ago. Domestic gross revenues in isolation grew a more modest 6.5% to ₹1,34,774 crore compared with ₹1,26,506 crore in June 2025. According to the official data, GST revenues from imports witnessed a sharp 34.6% surge, rising to ₹60,038 crore, while GST revenues from domestic transactions stood at around ₹1.35 lakh crore, marking a 6.5% increase. The strong import-led momentum indicates that external trade flows played a major role in boosting overall collections during the month.
The latest data reveals that IGST on imports emerged as the primary growth driver, with net GST revenue from imports jumping 42.2% to ₹45,370 crore, underscoring the strong contribution of customs collections. In contrast, net domestic GST revenue grew just 2.6% to ₹1,17,007 crore, reflecting muted growth in underlying domestic transactions. As per the official government data, the sustained rise in GST collections underscores improved tax administration, stronger compliance, and resilient economic activity, with higher import revenues contributing significantly to the overall increase. Domestic refunds increased 42.9% to ₹17,767 crore, while refunds of GST paid on imports rose 15.6% to ₹14,669 crore. The strong import-led momentum indicates that external trade flows played a major role in boosting overall collections during the month, with net GST collections from imports showing the sharpest growth at nearly 35%. This suggests increased import of raw materials and intermediate goods, reflecting sustained manufacturing activity and continued momentum behind the government's 'Make in India' initiative.
On a cumulative basis, gross GST collections during the first quarter (April-June) of FY27 reached ₹6,31,699 crore, registering 8.4% growth over ₹5,82,542 crore in the corresponding period last year. Net GST collections during this period stood at ₹5,40,218 crore, with the quarterly net GST revenue increasing 7.1% year-on-year. During the quarter, domestic GST collections rose 2.8% to ₹4,54,427 crore, while import-related GST revenues expanded significantly 26.2% to ₹1,77,273 crore. For the financial year up to June 2026, total refunds during the period stood at ₹91,482 crore, resulting in net GST collections of ₹5,40,218 crore. This quarterly performance demonstrates a stable but uneven start to the fiscal year, with the 8.4% growth indicating steady revenue momentum despite mixed domestic and import revenue trends.
Among major states, Jharkhand led the underperformers with the worst showing, recording a 43% decline in GST collections. Chhattisgarh followed with a 18% fall, while Tripura experienced a 14% contraction. In contrast, Gujarat topped the growth charts, reporting a 27% increase, with Meghalaya (22%) and Goa (19%) coming in next. Maharashtra, the largest GST contributor, recorded a 9% increase to ₹30,714 crore, while Karnataka and Delhi reported growth of 10% and 8% respectively. Karnataka and Gujarat also posted double-digit growth, collecting ₹12,937 crore and ₹11,743 crore respectively. However, several states underperformed, with Tamil Nadu seeing a 2% decline, Rajasthan experiencing a 5% fall, and Jharkhand recording a sharper 16% contraction in collections. Uttarakhand also posted a significant 21% decline in collections. Overall, the data points to strong import-led momentum in GST revenues, even as domestic growth remains relatively moderate.
Commenting on the latest figures, Manoj Mishra, partner and tax controversy management leader at Grant Thornton Bharat, said the June collections reflected the growing resilience of India's tax system despite global uncertainties. "June GST collections of ₹1.95 lakh crore, registering a robust 13.9% year-on-year growth, underscore the resilience of India's revenue base at a time when global trade and geopolitical uncertainties continue to dominate the economic landscape," he said. Mishra added that the strong rise in import GST and higher refunds highlighted improving tax administration, noting that the consistency of collections around the ₹2 lakh crore mark, alongside faster refunds, demonstrates that GST is maturing into a predictable and technology-driven revenue framework as the reform completes nine years. The 13-month high in collections, despite mixed domestic performance, indicates the tax system's ability to adapt to changing economic dynamics and external trade flows. According to CNBC-TV18, tax analyst Vivek Jalan from Tax Connect Advisory Services LLP noted that the 11.2% growth in net collections, with domestic revenues growing by 2.6% despite GST 2.0 rate reductions and ongoing impact of accumulated input tax credit on stocks, shows that consumption remains robust even under structural adjustments.
