India’s Goods and Services Tax (GST) revenue continues to showcase the country’s economic resilience. In June 2025, GST collections stood at ₹1.85 lakh crore, reflecting a 6.2% year-on-year (YoY) growth compared to June 2024. This consistent upward trend highlights stronger domestic demand, improved tax compliance, and steady economic recovery.

Key Highlights of June 2025 GST Collections

The GST structure comprises four components—Central GST (CGST), State GST (SGST), Integrated GST (IGST), and Cess. Here’s a detailed breakdown of the collections for June 2025:

Tax Component Collection (June 2025) Collection (June 2024) Growth
CGST ₹34,558 crore ₹32,627 crore +5.9%
SGST ₹43,268 crore ₹40,715 crore +6.3%
IGST ₹93,280 crore ₹87,310 crore +6.8%
Cess ₹13,491 crore ₹13,160 crore +2.5%

✅ Total GST Collection: ₹1.85 lakh crore
✅ Increase: 6.2% YoY

Why Are GST Collections Rising?

  • Higher domestic consumption fueled by a growing middle class.

  • Stronger imports, with GST from imports up by 11.4% in June 2025.

  • Improved tax compliance due to digital systems and better enforcement.

Q1 FY 2025–26 GST Performance (April-June 2025)

For the first quarter of FY 2025–26, India’s gross GST collection reached ₹6.22 lakh crore, up 11.8% compared to ₹5.56 lakh crore in the same period last year.

Net GST Revenue After Refunds:

  • June 2025 Net GST: ₹1.59 lakh crore (3.3% growth)

  • Q1 Net Revenue: ₹5.43 lakh crore (10.7% growth)

Faster Refunds: Boosting Business Liquidity

The government has focused on speeding up refunds, which is crucial for supporting businesses, especially exporters.

  • Total Refunds (June 2025): ₹25,491 crore (28.4% higher YoY)

  • Export Refunds via ICEGATE: 46.4% increase

Faster refunds improve working capital availability for businesses, helping them stay competitive.

State-Wise GST Growth Snapshot

Several states and union territories witnessed significant growth:

🚀 Nagaland: +71%
🚀 Ladakh: +22%
🚀 Bihar: +12%

However, a few regions like Manipur and Mizoram experienced slight declines, highlighting varied economic activity across the country.

Why Does This Matter?

Rising GST collections reflect:

✅ A resilient economy with robust consumption.
✅ Increased government fiscal capacity to invest in infrastructure, healthcare, and welfare.
✅ Better compliance from businesses as the GST system matures.

It’s a positive sign for both policy-makers and investors who track India’s growth trajectory.

Frequently Asked Questions (FAQs)

Q1. What was the GST collection for June 2025 in India?

The total GST collection for June 2025 was ₹1.85 lakh crore, up 6.2% compared to June 2024.

Q2. Which states showed the highest growth in GST revenue?

Nagaland (+71%), Ladakh (+22%), and Bihar (+12%) were among the top-performing states.

Q3. Why is GST collection important for the economy?

GST collections fund government spending on public services, infrastructure, and welfare, driving overall economic development.

Q4. Has the government improved GST refund processes?

Yes, refunds increased by 28.4% in June 2025, reflecting faster processing and better liquidity support for businesses.

Conclusion

India’s rising GST collections in June 2025 are a testament to the country’s growing economy, better tax administration, and strong domestic demand. With the government’s continued focus on digital compliance, faster refunds, and infrastructure spending, this upward trend is likely to support sustainable economic growth in the months ahead.

For businesses, staying compliant and taking advantage of the improved refund environment can lead to better cash flow and operational efficiency.