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Key Takeaways
The very first Provisional GST figures were released by the Finance Ministry on 1st July, 2026, according to which Uttar Pradesh has outperformed all other Indian states in June 2026 GST Growth figures, with its GST Growth standing at 19 percent to 9,165 crore from 7,675 crore in the previous month of May 2026. Besides, even Post settled SGST collection rose by 10 percent to 7,572 crore, thereby indicating good domestic demand in Uttar Pradesh state.
The factors behind this can be explained easily. Manufacturing expansion, FMCG supply chains and tax collection infrastructure are all responsible for the growth in GST collections in the state. Nationally, gross GST collections were up by 13.9% from a year ago at ₹1.94 lakh crore. Net GST receipts after accounting for refunds stood at ₹1.62 lakh crore, up 11.2% annually. Import GST receipts surged 34.6% to ₹60,038 crore.
Do you know? Rising GST collections reflect increasing formalisation for businesses and MSMEs in Uttar Pradesh. More transactions are now happening on the tax grid, meaning more vendors, traders, and manufacturers are part of the formal economy. This formalisation has a direct benefit: businesses with GST filings get easier access to credit, since lenders use GST returns as a key proof of turnover.
One real indicator of how deep formalisation runs in UP is the PM SVANidhi scheme. LoansJagat notes that over 68 lakh first-term loans have been disbursed under PM SVANidhi nationally, and Ravi, a fruit seller from Lucknow, successfully tracked his ₹10,000 first-term loan approval online through the scheme's digital portal. Rising GST collections in UP are directly linked to this kind of micro-level formalisation, where street vendors, small traders, and informal workers enter the documented economy for the first time.
There is much more behind the national growth picture. Though Maharashtra is the biggest contributor in total at ₹30,714 crore, its growth was a mere 9%. In Gujarat, which has seen SGST growth after settlement of dispute, the growth rate is 27% and the figure stands at ₹7,800 crore. Among these, Sikkim suffered the biggest slump of 53% to 170 crore. Puducherry has dipped 28% to 172 crore, and Tamil Nadu down by 2% to 9,776 crore.
Regarding aggregation, a total of GST 32,436 crore has been refunded to the government as on June 2026, which increased by 29.1 per cent from 25,121 crore, earned in the same month last year. The growth in domestic refunds has been 42.9%, which now stands at ₹17,767 crore. The growth in export refunds has been 15.6%, which comes at ₹14,669 crore. The gross GST collections in Q1 FY27 (April to June) are ₹6.32 lakh crore, a growth of 8.4% over Q1 FY26.
Growth in the GST of Uttar Pradesh by 19%, to ₹9,165 crore in June 2026, is indicative of a structural change and not a cyclical revival. Although the central revenue figures are strong, standing at ₹1.94 lakh crore, the disparity in state figures underscores that the story of formalisation in India is still restricted to a few economies. The next big question for Uttar Pradesh is how to sustain this momentum going into Q2 with El Niño on the horizon.
Why Uttar Pradesh is India's top state for GST registration, and the numbers?
UP presently has 2.18 million GST registered dealers who are recognised by the state government, the highest in any state of India and have registered1.15 trillion(INR) as GST &VAT during FY2025-26. In just the initial half of FY2025-26, UP added above 254,000GST dealers. This figure is nearly2.5 timeshigher than the2nd ranking statesuch as Maharashtra with 1 lakh numbers.
What is the trio of ways GST has had a boost in the Indian economy since the day of its implementation in 2017?
The gross GST collection in June2026was recorded as 1.94 trillion (INR), this shows 13.9 percent increase in the year on year basis, being the rapid growth recorded in the last 13 months.GST replaced 17 tax components by both the Central & State government, which did removed cascading the system.
