June GST Collection Hits ₹1.85 Lakh Crore, Grows 6.2% Year-on-Year

India’s GST (Goods and Services Tax) revenue collection for June 2025 surged to ₹1.85 lakh crore, registering a 6.2% year-on-year (YoY) growth compared to June 2024. This robust figure marks yet another month of consistent GST performance, underlining India’s steady economic recovery and improved tax compliance across sectors.

The continued strength in GST numbers is reflective of solid domestic consumption, a digitally-driven tax ecosystem, and strong growth in sectors like services, e-commerce, and manufacturing.

🧾 Detailed GST Collection Breakdown – June 2025

Here's a sector-wise and type-wise breakup of the total ₹1.85 lakh crore collected:

Compared to May 2025’s collection of around ₹1.72 lakh crore, June saw a month-on-month rise, reflecting stronger tax inflows from trade, logistics, and seasonal demand in sectors like FMCG and electronics.

🔍 What’s Fueling the GST Growth?

E-invoicing and Compliance Tech:
The expansion of e-invoicing to smaller businesses has streamlined B2B reporting, cutting fake input tax credit (ITC) claims and plugging revenue leakages.

Robust Consumption:
Urban and semi-urban demand has remained high across categories like personal care, automobiles, electronics, and services.

Import Duties and International Trade:
Higher IGST collection from imports indicates a rebound in trade volumes, possibly supported by capital goods, electronics, and crude oil imports.

Festive and Seasonal Trends:
The pre-festival shopping cycle and summer travel demand led to higher tax collections from hospitality, tourism, and entertainment.

🏛️ Why GST Performance Matters

Strengthens fiscal position: Higher GST inflows help the government fund welfare schemes and infrastructure without raising borrowings.

Boosts state revenues: SGST share directly supports states’ developmental agendas.

Supports macroeconomic indicators: A healthy GST ecosystem is a proxy for GDP growth, manufacturing output, and services expansion.

🔍 FAQs

Q1: How does June 2025’s GST collection compare to last year?
A: June 2025 recorded ₹1.85 lakh crore, which is 6.2% higher than June 2024. It indicates economic resilience and improved tax administration.

Q2: What sectors contributed most to the GST growth?
A: E-commerce, consumer durables, travel, hospitality, and logistics contributed significantly. Import duties also boosted IGST figures.

Q3: How does GST collection help the Indian economy?
A: GST revenue funds central and state projects, reduces fiscal deficits, and ensures sustainable development without excessive borrowing.

Q4: What is the role of e-invoicing in GST?
A: E-invoicing improves tax transparency, reduces fraud, enables real-time data verification, and increases collection efficiency.

published on 1st july

Publisher : SMITA

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