Strong import-led tax collections, rising compliance and sustained economic activity give India a solid start to FY27, even as refunds accelerate.
India’s indirect tax collections maintained their strong momentum in June, with gross Goods and Services Tax (GST) revenue rising 13.9% year-on-year to ₹1,94,812 crore, reflecting resilient economic activity, stronger imports and improving tax compliance.
According to the provisional figures released by the Ministry of Finance, the June collections were significantly higher than the ₹1,71,105 crore collected in the corresponding month last year. While domestic GST collections continued to grow steadily, it was the sharp increase in taxes collected on imports that provided the biggest boost to overall revenues.
Imports Emerge as the Biggest Growth Driver
The standout feature of June’s GST data was the remarkable jump in import-related tax collections.
GST revenue from imports climbed 34.6% year-on-year to ₹60,038 crore, underscoring healthy trade flows and continued demand for imported goods.
Domestic GST collections also remained positive, increasing 6.5% to ₹1,34,774 crore compared with June 2025.
The divergence between domestic and import-led collections indicates that external trade contributed significantly to India’s overall GST performance during the month.
Net GST Revenue Grows Despite Higher Refunds
The government also continued to accelerate refund processing for businesses and exporters.
Total GST refunds increased 29.1% year-on-year to ₹32,436 crore.
Domestic refunds rose sharply by 42.9% to ₹17,767 crore, while export refunds processed through ICEGATE increased 15.6% to ₹14,669 crore, pointing to faster release of working capital for businesses.
Even after accounting for the higher refunds, net GST revenue stood at ₹1,62,377 crore, registering an 11.2% increaseover ₹1,45,984 crore collected in June 2025.
The sustained growth in net collections suggests that revenue expansion remained broad-based despite larger refund outflows.
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FY27 Begins on a Strong Note
The momentum extended beyond June.
During the April-June quarter of FY2026-27, gross GST collections reached ₹6,31,699 crore, reflecting an 8.4% increase over the corresponding period of the previous financial year.
Net GST revenue for the quarter grew 7.1% to ₹5,40,218 crore.
GST collections from imports remained a major contributor, rising 26.2% to ₹1,77,273 crore during the first quarter.
Meanwhile, total refunds issued during the quarter increased 16.8% to ₹91,482 crore, indicating continued emphasis on timely tax administration.
IGST Continues to Dominate Tax Collections
Among the individual tax components collected during June:
- Central GST (CGST): ₹37,376 crore
- State GST (SGST): ₹45,116 crore
- Integrated GST (IGST): ₹1,12,320 crore
The large share of IGST collections once again reflected the strong contribution of imports and inter-state trade to India’s GST revenues.
Uttar Pradesh Posts Strong Growth; Maharashtra Leads Collections
Among the larger states, Uttar Pradesh emerged as one of the strongest performers, recording 19% growth in GST collections to ₹9,165 crore.
Maharashtra continued to contribute the highest absolute GST revenue at ₹30,714 crore.
Other major contributors included:
- Gujarat: ₹11,743 crore
- Karnataka: ₹12,937 crore
- Delhi: ₹5,987 crore
- Telangana: ₹5,050 crore
Punjab, Kerala and Assam also registered healthy double-digit growth during the month.
However, GST collections declined in several states, including Rajasthan, Madhya Pradesh, Tamil Nadu, Jharkhand, Uttarakhand and Himachal Pradesh.
IGST Settlement Strengthens State Finances
The settlement of Integrated GST continued to support state finances.
Post-settlement SGST transferred to States and Union Territories increased 9% year-on-year to ₹88,242 crore.
Among the largest beneficiaries of IGST settlement were Maharashtra, Gujarat, Karnataka, Uttar Pradesh and Tamil Nadu, reinforcing the importance of inter-state trade and imports in state revenue mobilisation.
What the Numbers Indicate
June’s GST figures offer more than just a tax collection update.
They suggest that India’s economy continues to benefit from a combination of healthy domestic consumption, expanding formalisation of businesses, resilient import activity and stronger tax compliance.
The simultaneous increase in collections and refunds also reflects improvements in tax administration, allowing businesses to receive refunds more quickly without weakening government revenues.
With gross GST collections approaching ₹2 lakh crore in June and the first quarter of FY27 beginning on a strong footing, the latest data indicates that indirect tax revenues remain one of the clearest indicators of sustained economic momentum in India.
