Kochi, October 3, 2026: Kerala has recorded strong growth in Goods and Services Tax revenue during the first half of the 2026-27 financial year, with the state’s post-settlement GST collections rising 18.8% year-on-year between April and September.
Kerala’s GST revenue after IGST settlement increased to approximately ₹19,583 crore, compared with ₹16,482 crore during the corresponding six-month period last year. The growth was higher than the combined 16% increase reported across states during the same period.
Kerala’s own State GST (SGST) collections also showed significant improvement, increasing 13.8% to ₹8,970 crore. The national growth rate for own SGST collections during the period was 5.8%.
The figures provide some relief to earlier concerns that changes to GST rates could significantly affect Kerala’s tax revenues. As a consumption-oriented state, Kerala had been closely monitoring the impact of the revised GST structure on its finances.
September also maintained the positive trend. Kerala’s post-settlement GST revenue for the month increased 9% to ₹3,451 crore, while its own SGST collections rose 8% to ₹1,481 crore.
Economic analysts have linked part of the improvement to increased purchases of motor vehicles and consumer durables. Changes in GST rates on luxury vehicles and lottery tickets may also have contributed to the state’s revenue performance.
Kerala’s relative performance among general-category states has also improved. According to analysis cited in the report, the state moved from 11th position a year earlier to fifth position based on the relevant GST growth comparison.
However, the figures remain provisional. Full-year data for 2026-27 will provide a clearer picture of whether Kerala can sustain the improved GST revenue growth through the remainder of the financial year.
