GST collections rise 14% to ₹1.95 lakh crore in June, driven by import revenue of ₹60,038 crore

The Goods and Services Tax (GST) collection of the central government has risen by 13.9% year-on-year to reach ₹1.95 lakh crore in June, according to the provisional data released by the Finance Ministry on Wednesday. The growth is driven by robust import tax revenues, which outpaced domestic collections during the month.

Furthermore, the gross domestic GST revenue stood at ₹1.34 lakh crore, an increase of 6.5% compared to last year, while the total net GST revenue witnessed a growth of 11.2% year-on-year to reach ₹1.62 lakh crore.

Notably, this time, the gross import revenue collections have seen a substantial increase of 34.6%, reaching an all-time high of ₹60,038 crore from ₹44,600 crore in June 2025.

“These numbers underscore the resilience of India's revenue base at a time when global trade and geopolitical uncertainties continue to dominate the economic landscape,” Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat, said.

Refunding activity recorded a sharp uptick

Similarly, the refunding activity also recorded a sharp rise during the month. According to the latest figures, the government disbursed a total refund of ₹32,432 crore in June 2026. This witnessed a growth of 29.1% from last year’s ₹25,121 crore.

“The 29.1% increase in refunds reflects a conscious effort to improve liquidity for businesses, particularly exporters, without compromising revenue buoyancy. This suggests that the tax administration is increasingly balancing efficient revenue collection with timely taxpayer facilitation,” Mishra added.

On a cumulative yearly basis, during the first quarter of FY27 (April-June), gross GST collections rose 8.4% year-on-year to ₹6.32 lakh crore, compared with ₹5.83 lakh crore in the corresponding period last year. Net GST revenue during the quarter increased 7.1% to ₹5.40 lakh crore.

“This highlights the positive impact of the Government's recent GST rate reform measures. The GST rate rationalisation exercise undertaken in September 2025 has strengthened domestic consumption, leading to increased revenue for businesses and higher collection of taxes,” Mahesh Jaising, Partner & Indirect Tax Leader, Deloitte India, said.

State-wise scenario shows mixed trend

Among the major states, Uttar Pradesh recorded one of the strongest increases in domestic GST collections, with revenue rising 19% year-on-year. Assam followed with 17% growth, while Punjab registered 14% and Gujarat 12%. Karnataka and Kerala each posted 11% growth, Telangana recorded 10%, and Maharashtra reported a 9% increase. In contrast, Tamil Nadu's domestic GST collections declined by 2%, while Rajasthan and Madhya Pradesh each recorded a 5% fall.

“The easing of the West Asia situation will lead to a lot of optimism on collections in the coming month, and it is likely that ₹2 lakh crore per month will become the new normal,” MS Mani, Partner, Deloitte India, said.

Karthik Mani, Partner & Leader - Indirect Tax: South, Tax & Regulatory Advisory at BDO India, said, "From a fragmented web of state and central levies in 2017 to a unified 'One Nation, One Tax' system today, GST has expanded the taxpayer base manifold, deepened compliance through e-invoicing, IMS and system led reconciliation, and given the exchequer a reliable, buoyant revenue stream even through global headwinds. As we look to the next phase, the wish list for industry and taxpayers is clear: a single PAN-Indian GST registration to end the compliance burden of state-wise registrations for pan-Indian businesses; a genuine amnesty for routine reconciliation mismatches so taxpayers aren't dragged into litigation over minor, non-fraudulent notices; auto-populated, system-driven monthly returns that reduce manual filing to near zero; full fungibility of Input Tax Credit across states, so that credit is not trapped by geography; and faceless assessments. Achieving these would mark GST's true transition from a tax reform to a genuinely frictionless, taxpayer-first system."