In a year where the GST rate rationalisation threw up a huge challenge for the State to mop up resources, Karnataka received ₹87,256 crore as part of the SGST, and the SGST portion of the IGST settlement during 2025-2026, about 5% more than 2024-2025 when the settlement was ₹82,808 crore.

Data shared by the Commercial Tax Department shows that a total of ₹1.58 lakh crore was collected as GST in the State, a growth of 11.6% over the collection in 2024-2025. Collection in Karnataka is the second highest in the country after Maharashtra where the GST collection stood at ₹3.61 lakh crore during 2025-2026.

Of the total collection of ₹1.58 lakh crore, ₹40,621 crore was CGST, ₹50,245 crore was SGST, and ₹67,351 crore was IGST.

The State government had estimated the revenue loss at about ₹10,000 crore owing to GST rate rationalisation in 2025-2026, and is estimating a revenue loss of about ₹15,000 crore in 2026-27.