GST Collections Rise 6.2% YoY in June to ₹1.85 Trillion, But See Dip from May and April Highs

#GST  #GSTIndia #GSTCollectionsupinJune

New Delhi: India’s Goods and Services Tax (GST) collections for June 2025 stood at ₹1.85 trillion, representing a 6.2% increase compared to the same month last year, according to official data released by the Ministry of Finance.

Despite this year-on-year growth, June’s GST revenue reflects a decline from the previous two months. In May 2025, collections reached ₹2.01 trillion, while April recorded an all-time high of ₹2.37 trillion as businesses rushed to close their financial year obligations.

Breaking down the figures:

• Domestic transactions contributed around ₹1.38 trillion to the June total, a 4.6% rise from June 2024.

• GST on imports surged 11.4% year-on-year, amounting to ₹45,690 crore.

The dip from May and April is in line with seasonal trends, as post-fiscal year-end months often see a softening in tax receipts. Nonetheless, the continued year-on-year growth indicates sustained economic activity and improved tax compliance across sectors.

🧾 June 2025 GST Collections

• Gross GST collections for June 2025 stood at ₹1.85 lakh crore, marking a 6.2% increase over June 2024—when collections were around ₹1.73 lakh crore. telugu.samayam.com+8onmanorama.com+8news.abplive.com+8bigul.co+1telugu.samayam.com+1

• Despite this year‑on‑year rise, there was a sequential dip compared to May (₹2.01 lakh crore) and April (₹2.37 lakh crore)—a typical post-year-end normalization. timesofindia.indiatimes.com+2news.abplive.com+2cfo.economictimes.indiatimes.com+2

• Breakdown of the ₹1.85 lakh crore:

  • Domestic transactions: ₹1.38 lakh crore (+4.6% YoY)

  • Import duties (IGST): ₹45,690 crore (+11.4% YoY)

  • CGST: ₹34,558 crore

  • SGST: ₹43,268 crore

  • CESS: ₹13,491 crore reddit.combigul.co+2news.abplive.com+2themunim.com+2

• Total refunds issued: ₹25,491 crore (+28.4% YoY), resulting in net GST revenue of about ₹1.59 lakh crore—a 3.3% YoY increase. financialexpress.com+5news.abplive.com+5bigul.co+5

• Prime Minister Modi highlighted that the GST, introduced on July 1, 2017, has now completed eight years and has helped simplify taxation, support SMEs, and strengthen cooperative federalism. cfo.economictimes.indiatimes.com+4news.abplive.com+4onmanorama.com+4

📈 Historical & Annual Context

• In FY 2024–25, gross annual GST collections surged to ₹22.08 lakh crore, up from ₹20.18 lakh crore in FY24—an impressive 9.4% YoY growth. This also marks a doubling of collections from ₹11.37 lakh crore in FY21. news.abplive.com+5onmanorama.com+5currentaffairs.adda247.com+5

• The average monthly collection in FY25 was ₹1.84 lakh crore, compared to ₹1.68 lakh crore in FY24 and ₹1.51 lakh crore in FY22. currentaffairs.adda247.com+3onmanorama.com+3financialexpress.com+3

• GST succeeded in unifying 17 central and state taxes plus 13 cesses into a five‑bracket structure. The taxpayer base expanded from 65 lakh in 2017 to over 1.51 crore in 2025. onmanorama.com+1currentaffairs.adda247.com+1

🔍 Key Trends & Drivers

1. Improved Compliance and Wider Tax Base

   • Rise in taxpayers, stricter enforcement, and automation—e.g., mandatory e‑invoicing above ₹5 crore and AI-powered mismatch detection—are enhancing reporting accuracy. timesofindia.indiatimes.com+4currentaffairs.adda247.com+4cfo.economictimes.indiatimes.com+4themunim.com

2. Strong Import Contributions

   • Post‑April, clear signs show that import duties are propelling higher GST growth:

     • May 2025 IGST: +25.2% YoY, contributing ~₹51,266 crore.

     • June IGST: +11.4% YoY. reuters.com+14business-standard.com+14bigul.co+14bigul.co+1timesofindia.indiatimes.com+1timesofindia.indiatimes.com+1timesofindia.indiatimes.com+1

3. Seasonal Normalization

   • The high in April is often followed by softer numbers in May and June, a recurring pattern after fiscal-year adjustments.

4. Stringent Refunds & ITC Controls

   • A 28% jump in June refunds highlights increased refunds—and reflects tighter scrutiny on input‑tax-credit (ITC) claims. Upcoming changes to GSTR‑3B filing rules from July will further curb misuse. reddit.com+3reddit.com+3timesofindia.indiatimes.com+3timesofindia.indiatimes.com

5. State-level Variances

   • For example, in May 2025, Punjab’s net collections rose 25.3% YoY to ₹2,006 crore—well above the national average—thanks to crackdown on bogus firms and stronger compliance enforcement. navbharattimes.indiatimes.com+15hindustantimes.com+15theweek.in+15

🧭 What the June Figures Mean

• Despite a sequential dip, June’s GST numbers remain strong, up 6.2% YoY, showing sustained economic demand—both domestic and import-led.

• The slowdown from May/April is seasonal, not alarming.

• Robust annual growth, and monthly collections averaging nearly ₹1.84 lakh crore, signal recovery across sectors—manufacturing, retail, and services.

• The increased refund volume underscores the importance of compliance vigilance, especially since new filing rules tighten room for error. Only GSTR‑1A corrections will be allowed post‑July, impacting ITC flow. reddit.com+3bigul.co+3cfo.economictimes.indiatimes.com+3onmanorama.com+3currentaffairs.adda247.com+3timesofindia.indiatimes.com+3timesofindia.indiatimes.com

🛠️ Upcoming Compliance Changes (Effective July)

• GSTR‑3B returns will become strictly auto-populated—no direct edits allowed.

• GSTR‑1A form must be filed before the 14th; late corrections delayed to next cycle. Less margin for error; a boon for revenue integrity, but a challenge for taxpayers. timesofindia.indiatimes.com

✅ Final Take

1. June GST at ₹1.85 lakh crore (+6.2% YoY) – indicates strong economic trajectory.

2. Net collections of ~₹1.59 lakh crore—up 3.3%—mean stable revenue flow.

3. Record ₹22.08 lakh crore for FY25 reflects sustained compliance and expanding tax footprints.

4. Compliance tightening—through portal reforms, auto-fill restrictions, and refund monitoring—signals a maturing tax ecosystem.