With the Goods and Services Tax (GST) Council slated to meet this month for its quarterly discussions that are overdue, government data has revealed a drop in June’s GST collections as compared with the previous months’.
The gross GST collections in June were over ₹1.84 lakh crore as compared with last year’s ₹1,73,813 crore, registering a 3.3 per cent year-on-year increase.
But, the collections slipped below the ₹2 lakh crore mark recorded in the previous two months.
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In May, the Goods and Services Tax (GST) collection was ₹2.01 lakh crore, and had touched a record high of ₹2.37 lakh crore in April this year.
In June, gross revenues from domestic transactions rose 4.6 per cent to about ₹1.38 lakh crore, while GST revenue from imports grew 11.4 per cent to ₹45,690 crore.
The gross Central GST revenues stood at ₹34,558 crore, State GST revenues at ₹43,268 crore and Integrated GST at about ₹93,280 lakh crore in June. Revenues from Cess were ₹13,491 crore.
Meanwhile, total refunds during the month rose by 28.4 per cent to ₹25,491 crore.
The net GST mop-up stood at about ₹1.59 lakh crore.
“On a month-on-month basis, the net GST collections of June this year have shown a reduction of 8.48 per cent, with collections from the domestic market and imports showing a fall,” noted Karthik Mani, Partner, Indirect Tax, BDO India.
With this being the 8th anniversary of the introduction of GST, it is hoped that such muted growth in collection on a year-on-year basis is just an aberration and GST collections would be back to the usual growth trajectory in the coming months, he added.
State-wise, large states like Maharashtra, West Bengal, Karnataka, Rajasthan, and Tamil Nadu reported collection increases of 4 to 8 per cent, as compared with Uttar Pradesh. Smaller states like Gujarat and Punjab reported contraction between 1 and 4 per cent.
Some states like Haryana, Bihar and Jharkhand have shown median increases of 10 per cent.
According to Vivek Jalan, Partner, Tax Connect Advisory, after two successive months of ₹2 lakh-crore-plus GST revenues and double-digit growth, ₹1.85 lakh crore collections in June 2025 seem a little dampening.
However, the YTD growth of 11.8 per cent in GST still gives a tax buoyancy of more than 1 per cent, which means that India is still in the 'Goldilocks situation' amid global turmoil, Jalan added.
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