GST mop-up grows 14% to Rs 1.95 lakh crore in June 2026; import-led growth, domestic sales lag

📌 Summary:

• GST revenue grew 13.9% year-on-year to Rs 1.95 lakh crore in June 2026 — the highest growth rate in 13 months
• Bulk of the growth came from taxes on imports; revenue from domestic transactions grew far slower, signalling weak domestic demand
• GST completed 9 years of implementation on July 1, 2026 (rolled out July 1, 2017)
• Experts flag unresolved structural issues: input tax credit (ITC) friction, slow dispute resolution, multiple state-wise registrations, and the inverted duty structure (inputs taxed higher than finished goods)

🎯 UPSC Relevance: GS3 (Indian Economy – Government Budgeting/Taxation) — indirect tax buoyancy, cooperative fiscal federalism and structural GST reform.

📝 Prelims Facts:

• GST launched July 1, 2017 via the 101st Constitution Amendment Act
• GST Council is the apex federal body under Article 279A
• Inverted duty structure blocks utilisation of input tax credit

🔑 Key Term: Inverted Duty Structure — where the GST rate on inputs is higher than on the finished product, causing accumulation of unutilised input tax credit.