Gross goods and services tax (GST) collections grew 6.2% on year to Rs 1.85 lakh crore in June (May transactions), much lower than 16.4% growth reported in the previous month, reflecting conservative consumer spending and geopolitical uncertainties.
The GST collections reached a record high of Rs 2.37 lakh crore in April 2025, while collections stood at Rs 2.01 lakh crore in May.
According to government data, GST revenues from domestic transactions rose 4.6% to Rs 1.39 lakh crore in June, while revenue from imported goods rose 11.4% to Rs 45,690 crore. The gross collection includes central GST receipts of Rs 34,558 crore, state GST receipts of Rs 43,268 crore, and Integrated GST (IGST) receipts of Rs 93,280 crore. Cess collection stood at Rs 13,491 crore in June.
With refunds surging, the net GST revenue rose by a modest 3.3% to about Rs 1.59 lakh crore in June 2025. Total tax refunds grew by 28.4% in June to Rs 25,491 crore compared with 19,853 crore in the year ago month.
“Around 6% growth in gross GST collections, coupled with less than 4% growth in advance tax collection for first quarter of FY26 does indicate softening of demand and cautious outlook,” Pratik Jain, Partner, Price Waterhouse & Co LLP. said. One of the reasons could be conservative spending by the consumers which may improve in next couple of months with overall geopolitical situation improving, Jain said.
While the GST growth in the current month’s collections seems moderate compared to earlier months, it is essential to note that the growth during the first quarter of FY26 has been very positive at around 10.7%, M.S.Mani, Partner- Indirect Taxes, Deloitte India, said.
The moderate growth in collections is also reflected in the low single digit increases in major states like Maharashtra (6%), Karnataka (8%) and Tamil Nadu (4%) and the decline in monthly collections in Gujarat (-1%) and UP (-4%), Mani said.
“Coming on the 8th anniversary of the introduction of GST in India and considering the fact that the next GST Council Meeting is on the anvil, businesses would be expecting significant rate rationalisation, simpler ITC processes and easier compliance requirements for SME’s in the next wave of GST reforms,” Mani added.