This fact is directly related to the improper account of electron-electron correlations (hartree and Hartree Fock electron-electron correlations) in the GGA approximation.
GGA under-estimates these correlation and therefore over-estimates lattice parameters and under-estimates energy bandgaps.
LDA approximation gives the reverse results (underestimates lattices parameters and overestimates energy bandgaps) but LDA is often closer to experimental values than GGA.
In fact there are several other approximations within DFT-Full Potential as well as DFT-Pseudo-Potential approaches, see following references for better insight:
- DFT approximations: Which one to use ? by P. Blaha and F. Tran
- Accurate Band Gaps for Semiconductors from Density Functional Theory Hai Xiao, Jamil Tahir-Kheli, and William A. Goddard, The journal of Physical Chemistry Letters,https://core.ac.uk/download/pdf/4888374.pdf