Gross GST Collections Double to ₹22.08 Lakh Crore in FY25: A Five-Year Fiscal Milestone
India's gross Goods and Services Tax (GST) collections have soared to a historic ₹22.08 lakh crore in FY25—doubling from ₹11.37 lakh crore in FY21. This five-year performance signals strong economic activity, improved compliance, and effective tax reforms across sectors.
According to the latest government data, the GST revenue for FY25 grew by 9.4% over FY24, which stood at ₹20.18 lakh crore. Monthly collections averaged ₹1.84 lakh crore, a significant increase over previous years.
Key Growth Drivers Behind GST Surge
Expanded Taxpayer Base
GST registrants have grown from 65 lakh in 2017 to over 1.51 crore in FY25.
Improved Compliance & Digitalization
Stronger enforcement, e-invoicing, and the rise of e-way bills boosted transparency.
Consumption-led Growth
Steady domestic demand and robust import activity supported higher tax inflows.
Efficient Refund System
Timely processing of GST refunds encouraged regular and honest tax declarations.
Monthly Trends Highlight Momentum
April 2025: ₹2.37 lakh crore – Highest-ever monthly GST collection.
May 2025: ₹2.01 lakh crore – Second month in a row crossing ₹2 lakh crore.
March 2025: ₹1.96 lakh crore – One of the strongest closes to a fiscal year.
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Economic Implications
Higher Revenue for Government: Greater fiscal space for capital spending and social schemes.
Improved Macroeconomic Indicators: Tax collection reflects sustained business momentum and consumption.
Policy Confidence: Reinforces trust in GST as a stable and scalable indirect tax framework.
Year-on-Year Gross GST Collection Data
| Fiscal Year | GST Collection (₹ Lakh Crore) | Growth (%) |
|---|---|---|
| FY21 | 11.37 | – |
| FY22 | 14.83 | +30.4% |
| FY23 | 18.08 | +21.8% |
| FY24 | 20.18 | +11.6% |
| FY25 | 22.08 | +9.4% |
Frequently Asked Questions (FAQs)
Q1: Why did GST collections double over the last five years?
The doubling is due to increased taxpayer compliance, broader registration, digitization through GSTN and e-invoicing, and consistent domestic demand.
Q2: What sectors contributed most to GST growth?
Key contributors include manufacturing, services, FMCG, real estate, and retail, supported by strong import tax collections.
Q3: What is the difference between gross and net GST collections?
Gross GST is the total collected before refunds. Net GST accounts for refunds issued. In FY25, gross was ₹22.08 lakh crore, while net collections stood at ₹19.56 lakh crore.
Q4: How does this impact the Indian economy?
High GST collections strengthen government revenue, reduce borrowing needs, and allow more capital investment in infrastructure and welfare.
Published on: June 30, 2025
Uploaded by: PAVAN
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