Gujarat GST Revenue Up 29% in First Half Despite Rate Cuts

Gujarat’s GST revenue rose 29% to Rs 49,858 crore from April to September. Finance ministry data shows IGST settlement drove most of the gain.

Gujarat’s GST revenue for April to September 2026 reached Rs 49,858 crore, up 29% from Rs 38,540 crore in the same six months last year. State government spokesperson and minister Jitu Vaghani released the figures after Wednesday’s cabinet meeting, DeshGujarat reported. September alone brought in Rs 8,167 crore, 35% more than the Rs 6,050 crore of September 2025, Gujarat Samachar reported.

Growth after the September 2025 rate cuts

The Centre and the states cut GST rates on a long list of goods from September 22, 2025. Almost all of the comparison period, April to mid-September 2025, ran at the old, higher rates, so a 29% rise after the cuts needs explaining. The state government credits a business-friendly environment and better voluntary compliance by taxpayers.

The Union finance ministry’s own state-wise tables point somewhere else. In its July 2026 GST revenue report, Gujarat’s pre-settlement SGST, the tax its own registered businesses pay in, came to Rs 18,391 crore for April to July, up 8% from Rs 16,975 crore. Post-settlement revenue, which adds the state’s share of integrated GST (IGST) on inter-state sales and imports that the Centre passes on, reached Rs 33,315 crore, up 29% from Rs 25,926 crore.

Work through those two lines and the IGST share comes to about Rs 14,924 crore for the four months, against Rs 8,951 crore a year earlier, a rise of roughly two-thirds. Of the Rs 7,389 crore added over the period, about Rs 6,000 crore came from IGST settlement and about Rs 1,400 crore from SGST collected inside Gujarat.

IGST goes to the state where goods and services are consumed. A bigger settlement means Gujarat’s households and businesses bought more from other states and from abroad, or that the Centre cleared more of the IGST pool, rather than that more local traders started filing returns. The state has not published a similar split for August and September.

Gujarat’s 29% against India’s 11.6%

National gross GST rose 14.7% in September and 11.6% over the half year, to Rs 12,46,278 crore, Gujarat Samachar reported. A national gross figure and a single state’s post-settlement revenue measure different things, so the gap overstates how far Gujarat’s economy outran the rest of the country. On the like-for-like post-settlement line in the ministry’s July table, all states together grew 13% that month while Gujarat grew 26%.

Rs 12,222 crore in one month for the state tax department

In September the State Tax Department collected Rs 12,222 crore in all. GST made up about two-thirds of it. VAT, mostly on petroleum products, added Rs 2,930 crore, electricity duty Rs 1,102 crore and professional tax Rs 24 crore. August followed a similar pattern, with Rs 8,312 crore of GST in a Rs 12,505 crore month, Gujarat Samachar reported from Chief State Tax Commissioner data.

The state presented a Rs 4.08 lakh crore budget in February. Six months in, GST has brought in about Rs 11,300 crore more than in the first half of last year, and most of that extra money arrived through the Centre’s settlement account.

Sources: DeshGujarat, Gujarat Samachar, Ministry of Finance GST revenue report, July 2026 (gst.gov.in), All India Radio News

This report was written with AI assistance from the publicly reported sources linked here; each fact was cross-checked against at least two of them.

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