GST enters year 10; revenue rises 14 pc to Rs 1.95 lakh cr in June
GST has transformed India’s tax landscape in the past nine years, from record collections to simplified compliance, says Finance Ministry
Goods and Services Tax (GST) collections rose 14 per cent to about Rs 1.95 lakh crore in June on higher tax mop-up from imports as well as domestic supplies, government data showed. Gross GST revenues were over Rs 1.94 lakh crore in May and Rs 1.71 lakh crore in June 2025.
July 1 marks nine years of the GST regime. "From ₹7.19 lakh crore in 2017-18 to ₹22.25 lakh crore in FY 2025-26, GST collections are ensuring stronger nation-building through stronger economic activity, improved compliance, wider formalisation and technology-enabled tax administration," said the Union Finance Ministry in a post on X.
"GST's motto has been to unite India under One Nation, One Market, One Tax, simplifying business and accelerating growth to strengthen our economy," it added. "GST has transformed India’s tax landscape in the past nine years — from record collections to simplified compliance."
June data
As per latest data, gross collections from domestic transactions were up 6.5 per cent to about Rs 1.35 lakh crore last month. These include central GST (CGST), state GST (SGST) and integrated GST (IGST) collections of Rs 37,376 crore, Rs 45,116 crore, and Rs 52,282 crore, respectively. GST revenue from imports surged 34.6 per cent to Rs 60,038 crore in June.
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Total refunds were up 29.1 per cent at Rs 32,436 crore in June. After adjusting refunds, net collection grew 11.2 per cent to over Rs 1.62 lakh crore in June.
AKM Global, Lead-Indirect Tax, Ikesh Nagpal, said compared to May 2026, collections have remained virtually stable, suggesting that GST revenues are settling into a consistently high trajectory rather than being driven by one-off spikes.
"What stands out is the 34.6 per cent growth in gross import revenue, significantly outpacing the 6.5 per cent growth in domestic collections, reflecting sustained import activity despite an uncertain global environment. Equally encouraging is that this growth came alongside a 29.1 per cent increase in refunds, indicating that strong revenue growth is being achieved without affecting liquidity for businesses," Nagpal said.
Economic reilience
Deloitte India Partner MS Mani said GST monthly collections inching closer to the Rs 2 lakh crore-mark in a month that saw significant economic disruptions due to the West Asia situation is a true reflection of the country's economic resilience.
"It is clear now that the reduction in GST rates last year has been more than overcome by expansion in transaction values on which GST rates are applied and this is sustainable going forward. The easing of the West Asia situation will lead to a lot of optimism on collections in the coming month and it is likely that (GST collections of) Rs 2 lakh crore per month will become the new normal," Mani said.
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EY India Tax Partner Saurabh Agarwal said accelerated pace of GST refunds underscores the government's proactive commitment to unlock business liquidity and ensure that working capital constraints do not stifle industry growth.
"However, the rising share of collections from imports warrants closer structural analysis. To mitigate this reliance and further catalyse domestic capacity, there is a compelling case for policy recalibration -- specifically by redeploying unutilised outlays from the Production Linked Incentive (PLI) schemes to strategically aggressively attract and scale high-value manufacturing within India," Agarwal said.
Demand for capital goods
BDO India Partner - Indirect Tax, Tax & Regulatory Advisory, Maulik Manakiwala, said strong GST collections in June have proven to be yet another indicator of the robustness of the economy and increasing compliance awareness.
Tax Connect Advisory Services LLP, Partner, Vivek Jalan said import revenues surged 34.6 per cent in June and 26.2 per cent year-on-year, which may reflect on the strong demand for capital goods and raw materials that fuel industrial growth.
"The buoyancy was further supported by pre-deposits made for GSTAT appeals and enforcement actions such as issuance of SCNs under Section 74 for 2020-21, ahead of the August 2026 time bar," Jalan said.
With agency inputs