Ahead of Budget 2026, India’s GST collection in January 2026 rose 6.2% to ₹1.93 lakh crore, driven by strong domestic activity and import revenue growth. Net GST revenue reached ₹1.70 lakh crore.
GST Collection Rises Significantly Before Budget 2026
New Delhi: Ahead of the presentation of Budget 2026, news of economic relief for the government has arrived. Goods and Services Tax (GST) collections increased by 6.2% to ₹1,93,384 crore in January. GST collections in the same month last year were ₹1,82,094 crore. This increase was driven by strong domestic activity and growth in import revenue.
Total GST collections from April 2025 to January 2026 reached ₹18,43,423 crore, representing an annual growth of 8.3%. Net GST revenue for January was ₹1,70,719 crore, a 7.6% increase over the same month last year. Net revenue reached ₹15,95,752 crore, a 6.8% increase.
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Total refunds in January were recorded at ₹22,665 crore, a slight decline of 3.1% compared to last year. Domestic refunds fell by 7.1% to ₹13,119 crore, while export refunds increased by 2.9% to ₹9,546 crore.
Domestic GST collections continued to grow, rising 4.8% to ₹1,41,132 crore in January. Import GST collections remained strong, with total import revenues of ₹52,253 crore, a 10.1% increase compared to January 2025. The compensation cess, issued as a transitional measure, declined by 55.6%, from ₹13,009 crore last year to ₹5,768 crore.
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The picture of GST revenue after state-wise settlement was mixed.
Positive Growth: Haryana (27%), Maharashtra (15%), Gujarat (13%), Himachal Pradesh (18%), Punjab (12%)
General Growth: Tamil Nadu (5%), Karnataka (7%), Uttar Pradesh (2%), Delhi (3%), West Bengal (1%)
Declining: Madhya Pradesh (-15%), Jharkhand (-6%), Odisha (-10%), Chhattisgarh (-23%), Ladakh (-30%), Lakshadweep (-30%)
Among the Union Territories, Chandigarh and Puducherry saw an increase, while Lakshadweep saw a sharp decline.
This strong GST collection is a positive sign for the government's coffers. This could impact economic plans, subsidies, and development projects in Budget 2026. Experts say that strong GST collections will provide the government with financial stability and greater investment capacity.
