Chandigarh GST Collections Rise 7% in June 2026, Q1 Shows Volatility
Chandigarh GST Up 7% in June, Q1 Volatile

Chandigarh's Goods and Services Tax (GST) collections rose 7 per cent year-on-year in June 2026, reaching Rs 229 crore compared to Rs 215 crore in June 2025, according to provisional data from the Union Finance Ministry released on Wednesday. The Union Territory's growth rate matched the national average of 7 per cent for domestic GST revenue.

Volatile First Quarter

The June figure caps a volatile first quarter for the city. GST collections swung from Rs 306 crore in April to Rs 373 crore in May, before dropping to Rs 229 crore in June. Month-on-month, revenue fell nearly 39 per cent between May and June, though the year-on-year comparison remained positive.

April opened the fiscal year on a weak note, with collections down 7.8 per cent from April 2025, largely due to high base effects from year-end return filings. May reversed the trend sharply, with a 3 per cent year-on-year increase, followed by June's 7 per cent growth.

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Cumulative domestic GST collection for April-June 2026 stood at Rs 908 crore (Rs 306 crore + Rs 373 crore + Rs 229 crore), against roughly Rs 887 crore over the same period last year, a first-quarter gain of about 2-3 per cent, trailing the pace of several larger neighbouring states.

Comparison with Other Regions

Among Union Territories, Chandigarh's June performance was mid-range. Andaman & Nicobar Islands (+53 per cent) and Lakshadweep (+59 per cent) posted the sharpest gains, though from small bases. Chandigarh's 7 per cent growth outpaced Jammu & Kashmir (-15 per cent), Himachal Pradesh (-26 per cent), Puducherry (-28 per cent), Ladakh (-7 per cent), and Dadra & Nagar Haveli and Daman & Diu (-2 per cent), but lagged Punjab's 14 per cent and the 9 per cent and 8 per cent growth of Haryana and Delhi, respectively.

Nationally, gross domestic GST revenue grew 2.8 per cent in June, while total gross GST revenue (including imports) rose 13.9 per cent, and net revenue after refunds was up 11.2 per cent. On the state-wise domestic-only growth measure, the national total also grew 7 per cent, placing Chandigarj precisely in line with the countrywide trend.

SGST Settlement Shows Stronger Growth

A more encouraging signal comes from SGST settlement numbers, which reflect actual flows into Chandigarh's account after inter-governmental IGST adjustment. Pre-settlement SGST collected in Chandigarh rose 9 per cent in June to Rs 64 crore. Post-settlement SGST, including the city's share of IGST distributed by the Centre, rose 11 per cent to Rs 205 crore for the month.

Over the April-June quarter, the gap widened: pre-settlement SGST grew just 3 per cent to Rs 204 crore, while post-settlement SGST jumped 29 per cent to Rs 713 crore, indicating Chandigarh has been a net beneficiary of the IGST settlement mechanism so far this fiscal year.

Taxpayer Base Stable

The number of registered GST taxpayers in Chandigarh stood at roughly 33,800 as of end-June, split between about 14,800 under central jurisdiction and 19,000 under the UT administration. This is a marginal increase from the start of the quarter, suggesting a broadly stable formal taxpayer base.

National Context

Nationally, total gross GST revenue for June 2026 came in at Rs 1,94,812 crore, up 13.9 per cent from Rs 1,71,105 crore a year earlier, driven by a 34.6 per cent jump in import-linked IGST. Net revenue after refunds rose 11.2 per cent to Rs 1,62,377 crore. The Finance Ministry noted the figures remain provisional and may be revised.

For Chandigarh, the headline takeaway is steady alignment with the national trend, with tax collections neither leading nor lagging the country in June, despite a bumpier monthly path through the quarter.

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