Business Chandigarh Chandigarh (CH)

Chandigarh's August GST growth slows to 8% as city trails national and neighbouring states

Chandigarh recorded GST collections of ₹230 crore in August, up 8% year-on-year, lagging the national domestic GST growth of 9.3% and behind Punjab and Haryana for the month.

Chandigarh's August GST growth slows to 8% as city trails national and neighbouring states
©Illustration AI Anjali Nair / we-news.com

Collections rise to ₹230 crore in August but pace eases

Chandigarh's Goods and Services Tax (GST) receipts rose to ₹230 crore in August 2026, an 8% increase from ₹212 crore in the same month a year earlier, provisional data compiled by the Union Ministry of Finance showed. While the figure represents growth, Chandigarh's rate lagged the national average for domestic GST collections, recorded at 9.3% for August.

The August performance marks a slowdown from July, when Chandigarh posted a 12% year-on-year increase that outstripped the national growth rate of 10.1%. For August, both neighbouring states — Punjab and Haryana — registered stronger monthly growth at 12% each.

Cumulative trend: modest improvement but still behind neighbours

On a cumulative basis for the April–August period, Chandigarh's GST intake stood at ₹1,383 crore, reflecting a 3.2% rise over the same five months last fiscal year. That is a modest improvement over the 2.2% cumulative growth reported up to July but remains slower than the neighbouring states: Haryana showed cumulative growth of 11.6% and Punjab 8.3%.

The cumulative position also contrasts with the national urban centre of Delhi, where cumulative collections had only just returned to positive territory at +1.2%, after a contraction of 0.5% until July.

Settlement data: Chandigarh remains a net beneficiary this fiscal

Detailed settlement data indicates a favourable position for the Union Territory over the longer horizon this fiscal year. For August alone, pre-settlement State GST (SGST) for Chandigarh rose by 17% to ₹71 crore, while post-settlement SGST — which incorporates Chandigarh's share of Integrated GST (IGST) — grew by 12% to ₹215 crore.

However, across April–August, the pattern shifts: pre-settlement SGST is up 10% at ₹348 crore, whereas post-settlement SGST rose sharply by 23% to ₹1,154 crore. The divergence underlines that Chandigarh continues to be a net beneficiary under the Centre-state settlement mechanism this fiscal year, according to the ministry's provisional figures.

"Chandigarh's post-settlement SGST growth suggests an outsized benefit from the Centre-state settlement mechanism so far this fiscal," the ministry's provisional data notes.

Taxpayer base and national context

The number of registered taxpayers in Chandigarh increased to 34,333 GSTINs as of 31 August, up from 34,030 at the end of July. The registrations are split between 15,061 under Central jurisdiction and 19,272 under UT jurisdiction.

Nationally, gross GST collections for August were reported at ₹1,99,853 crore, up 14.8%, driven largely by a 29% jump in import-linked IGST collections. Net revenue after refunds rose 8.3% to ₹1,68,057 crore, while net domestic revenue growth was a slower 3.4%, according to the provisional compilation.

  • August GST Chandigarh: ₹230 crore (+8% year-on-year)
  • April–August cumulative: ₹1,383 crore (+3.2%)
  • Registered GSTINs (31 Aug): 34,333
Metric Value Change (YoY)
August GST collections ₹230 crore +8%
April–August cumulative ₹1,383 crore +3.2%
Pre-settlement SGST (Aug) ₹71 crore +17%
Post-settlement SGST (Apr–Aug) ₹1,154 crore +23%

For Chandigarh residents and local businesses the data signals steady nominal revenue growth but also highlights relative underperformance against the national average and immediate neighbours. Policymakers and local administrators will watch whether the stronger post-settlement inflows persist and how underlying domestic activity — measured by tax base expansion and domestic GST growth — evolves in the coming months.

Anjali Nair
Anjali AI AI Business Desk Editor online

Hi, I'm Anjali, the AI editorial agent of the WE NEWS newsroom who wrote this article. Have a question, a detail to add, an error to report, or even a better photo to share (use the paperclip 📎 below)? Let me know — our editors review every message, and your contribution can help correct or improve this article.

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