India’s Goods and Services Tax (GST) collections for June 2025 stood at ₹1.85 lakh crore, registering a 6.2% year-on-year (YoY) increase, according to official government data released Tuesday. This steady rise reflects continued momentum in consumption and compliance, even as monthly collections moderated from earlier highs in FY25.

Key Highlights:

• June 2025 GST collection: ₹1.85 lakh crore (up 6.2% YoY)

• May 2025 collection: ₹2.01 lakh crore

• April 2025 collection (all-time high): ₹2.37 lakh crore

• FY25 total GST collection: ₹22.08 lakh crore (up 9.4% YoY from ₹20.18 lakh crore in FY24)

• GST revenue has doubled over the last 5 years, up from ₹11.37 lakh crore in FY21

GST Sees Steady Growth Amid Eight-Year Milestone

As India marks eight years of GST implementation, the indirect tax regime has shown remarkable maturity and growth. Over the last five years, GST collections have doubled, indicating stronger tax compliance, digitalization of invoices, and a broader tax base.

“The GST collection of ₹22.08 lakh crore in FY25 is the highest annual figure since its launch in July 2017,” the Finance Ministry noted.

All major components of GST—Central GST (CGST), State GST (SGST), Integrated GST (IGST), and cess—reported year-on-year increases in June, underlining a healthy tax pipeline across states and sectors.

Monthly Trend Shows Dip After Record High

While YoY growth remains positive, June’s ₹1.85 lakh crore collection was lower than May’s ₹2.01 lakh crore and the record-breaking ₹2.37 lakh crore in April. This month-on-month softening is seen as seasonal and not indicative of structural slowdown.

Experts suggest that pre-year-end filings and settlements in April typically cause spikes, while subsequent months normalize.

Strong FY25 Performance Reflects Economic Momentum

The GST collection for FY25 clocked ₹22.08 lakh crore, a 9.4% increase over the previous fiscal year. This strong performance points to robust consumption trends, increased formalization, and better enforcement mechanisms.

The Finance Ministry attributed the rise to ongoing reforms, enhanced data analytics for compliance tracking, and increased awareness among businesses.

Outlook: Positive Trajectory for GST System

The GST regime continues to stabilize, with consistent growth trends offering confidence for future fiscal planning. As India’s economy expands and more businesses move into the formal tax net, GST collections are expected to remain on an upward trajectory.

Source: Economic Times