India’s GST Collection Rises 6.2% in June; FY25 Sees Record Annual High

India’s gross Goods and Services Tax (GST) collection for June 2025 stood at ₹1.85 lakh crore, registering a 6.2% increase compared to the same month last year, according to government data released Tuesday.

Despite the year-on-year uptick, June’s collections saw a decline on a monthly basis. The figure fell short of May’s ₹2.01 lakh crore and April’s all-time high of ₹2.37 lakh crore, which was the highest monthly collection since the inception of GST in July 2017.

In June, all major components of GST—Central GST (CGST), State GST (SGST), Integrated GST (IGST), and compensation cess—posted positive year-on-year growth, reflecting steady momentum in tax compliance and domestic consumption.

Marking eight years since the implementation of the GST regime, the government announced that overall collections have nearly doubled in the past five years. For FY25, total GST revenue surged to a record ₹22.08 lakh crore, up from ₹11.37 lakh crore in FY21.

The figures for FY25 represent a 9.4% growth over the ₹20.18 lakh crore collected in FY24, making it the highest-ever annual GST collection on record.

While June’s growth appears moderate compared to previous months, experts point to global economic uncertainties that may be dampening consumer sentiment. However, regional data highlights a more complex picture.

States and Union Territories such as Nagaland, Sikkim, Tripura, Lakshadweep, and Ladakh reported robust GST growth, suggesting a boost in local consumption and infrastructure-driven economic activity.

Commenting on the data, Saurabh Agarwal, Tax Partner at EY India, told ANI: “This uplift suggests increased consumer activity and, importantly, a continued thrust on infrastructure spending by the government in these areas, which is a positive indicator for regional development.”

As GST enters its ninth year, the continued rise in collections reflects both improving compliance and the resilience of India’s formal economy amid a changing global landscape.

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