GST revenue up 6.2% to ₹1.85 lakh crore in June 2025, slowest growth in 4 years
The growth rate of gross collections in June 2025 was the lowest growth in four years, since June 2021. The latest data also shows that collections in the first quarter of this financial year (April-June 2025) stood at ₹2.07 lakh crore.
The GST data shows that, once refunds are accounted for, the net GST collections figure stood at ₹1.59 lakh crore in June 2025, 3.3% higher than the comparable figure in June 2024.
'The domestic GST collections for June 2025 present a nuanced picture,' Saurabh Agarwal, Tax Partner at EY India, said. 'While the overall growth appears muted, likely influenced by the prevailing geopolitical uncertainties and their discernible impact on consumer sentiment, we must look beyond the headline numbers,' he said.
He added that it is a positive sign that the data shows strong pockets of growth in GST collections in regions such as Nagaland, Sikkim, Tripura, Lakshadweep, and Ladakh.
'Around 6% growth in GST collections, coupled with less than 4% growth in advance tax collection for the first quarter of FY26, does indicate softening of demand and cautious outlook,' Pratik Jain, Partner, Price Waterhouse & Co LLP said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
an hour ago
- New Indian Express
GST notices based on UPI transactions: Karnataka traders on warpath; official tells action as per law
BENGALURU: Amid rising concerns among traders in Karnataka over the issuance of nearly 6,000 GST demand notices based on UPI transaction data, a top tax official has termed the action as within the framework of law. Traders' bodies have gave a strike call over the matter. Speaking to PTI, Meera Suresh Pandit, Joint Commissioner of Commercial Taxes, also clarified that notices are not final tax demands and the recipients have the right to respond with supporting documentation. If the reply is convincing or the goods and services are exempted under the GST Act, notices will be dropped, she added. Reacting to the issue of notices sent to traders based on UPI transactions, a number of traders associations in the state have given a call to the traders to boycott UPI transactions. They have also called for a strike on July 25. Responding to the proposed strike and calls to revert to cash-only transactions, Pandit explained in detail the rationale behind the notices. "When a person reaches the threshold limit of Rs 20 lakh for services or Rs 40 lakh for goods, it is mandatory for the person to get registered under the GST Act to take registration and declare his turnover," the officer told PTI. "The registration empowers the trader to collect taxes from the consumers and pay it to the government. These taxes are meant for the government, but when the dealers collect them and fail to remit them, they are treated as unregistered persons, and we issue notices accordingly." The department, she said, cannot individually identify every trader evading registration. Instead, the Services Analysis Wing at the department's head office used reliable sources such as UPI transaction data to flag potential defaulters. "If a person has transacted over Rs 20 lakh for services or Rs 40 lakh for goods in a year through UPI, it indicates that they may be liable to register under GST," Pandit said, adding that notices were based only on preliminary data, not final determinations. The officer said the department is not aware whether the turnover is entirely exempted, partially taxable, or fully taxable. That is why the notice includes a proposal to register and pay applicable taxes, interest, and penalties. "If the turnover is completely exempted from goods or services like tuition fees, the registration is not required. If the reply is convincing, the notice will be dropped and proceedings will close with a nil demand," Pandit clarified. She also addressed doubts prevailing among the trading circles. "Some innocent traders are being carried away, hoping every notice will be withdrawn. Some are being misled. But if they want relief within legal provisions, I request them to come to the department. We will guide them as per the law," the Joint Commissioner said. "Calling for a 'Bandh' will not serve the purpose. They may represent their concerns peacefully," she noted. On concerns that UPI alone doesn't reveal the full turnover, Pandit said, the "UPI transaction is only one indicator." "There could be other modes of payment like cash, card, or net banking. So, if they are not liable for registration, they must explain and support their claim through written replies or personal hearings." The department, the officer said, is open to engagement and has made extensive efforts to educate traders. "Prior to the rollout of GST in July 2017, we conducted door-to-door awareness programmes, workshops, and released educational videos," she said. "We also have helplines now across offices, and traders are coming forward to seek guidance... Even if traders fail to respond to the first notice, we send three reminders and conduct a field visit if necessary. Final assessment happens only after considering their response and facts," she said. "We strictly adhere to the principles of natural justice and ensure every opportunity is given. When you buy a plot, you go to the sub-registrar's office without being told. Likewise, traders should know applicable tax laws. Ignorance cannot be an excuse. The department is always there to guide," she said. Trade activist Sajjanraj Mehta raised concerns over the fairness of recent GST notices. He stated that while the Commercial Taxes Department is legally within its powers to use such data, the lack of prior warning, context, and education has created confusion. "Many small traders were unaware that their UPI inflows, often a mix of business and personal transactions, would be treated as undeclared turnover," Mehta told PTI. "The fairness issue lies not in enforcement itself, but in the suddenness and lack of clarity," he added. Mehta stressed that the department should differentiate between exempt and taxable goods before sending notices. Issuing notices without accounting for exempt goods like fruits, vegetables, or unbranded food items shows a lack of nuance, he claimed. "A more tailored, data-informed approach could have avoided unnecessary panic." Mehta acknowledged a growing trend among vendors in Bengaluru and Mysuru to shift away from UPI. "There is visible hesitation, especially in markets and grocery stores. Some vendors are reverting to cash or asking customers to avoid UPI. However, urban areas with tech-savvy customers still show strong digital payment usage," he underlined. According to him, traders are currently seeking clear guidelines on how UPI transactions are treated under GST, a mechanism to contest mismatches or clarify exemptions without immediate penalties and awareness programmes in local languages.
Economic Times
2 hours ago
- Economic Times
Parliament watch: From debt to GST to NPA, govt shares key data as Monsoon Session kicks off
Synopsis In FY24, the Centre forwent ₹99,000 crore in corporate tax revenue due to incentives. India's external debt reached $736.3 billion, remaining sustainable at 19.1% of GDP. The PM Internship scheme saw 22,500 offers accepted, while the government issued ₹72,275 crore in sovereign gold bonds. PLI schemes drove ₹1.76 lakh crore in investments, creating over 12 lakh jobs. PTI New Delhi: Security personnel atop the Parliament building, in New Delhi. Centre Gave up ₹99,000 cr Corporate Tax Revenue in FY24 on Account of Tax Incentives The Finance Ministry Tuesday informed Parliament that the Centre has foregone ₹99,000 crore of corporate tax revenue in FY24 on account of tax incentives. The corporate tax revenue foregone in 2023-24 stood at ₹98,999 crore, followed by ₹88,109 crore and ₹96,892 crore in 2022-23 and 2021-22, respectively, MoS for finance Pankaj Chaudhary said in a written reply to Rajya Sabha. In 2020-21 and 2019-20, the total corporate tax revenue foregone was ₹75,218 crore and ₹8,043 crore, respectively. At $736.3 b, External Debt Hits 19.1% of GDPIndia's external debt stood at $736.3 billion as of March 2025, which was only 19.1% of gross domestic product and 90.8% of forex reserves, MoS for finance Pankaj Chaudhary told RS Tuesday. 'These debt vulnerability indicators are benign and indicate India's external debt remains sustainable and prudently managed,' he said. He added that external debt of nations rises over time as it is associated with increasing investment and productivity, which has also been the case with India. "India has managed its external debt prudently with the overarching objective of keeping the current account deficit within sustainable limits." PM Internship Scheme: 22,500 Offers Accepted So Far About 71,000 offers were made by companies to the youth under the second round of the PM Internship scheme as of July 17 and about 22,500 were accepted by them, the Rajya Sabha was informed on Tuesday. In a written reply, minister of state for corporate affairs Harsh Malhotra said about 327 companies had posted over 118,000 internship opportunities against over 4,55,000 applications. No GST Compensation Pending, Except to Arunachal & Manipur The Centre Tuesday informed Parliament that no amount is pending for release of the final GST compensation to states and Union Territories except Arunachal Pradesh and Manipur. In the case of these two states the Centre has not received the certificate of Auditor General, required to release the payment, MoS for finance Pankaj Chaudhary told Rajya Sabha in a written reply. ₹72,275 cr Sovereign Gold Bonds IssuedThe government issued sovereign gold bonds worth ₹72,275 crore–equivalent of 146.96 tonnes of the precious metal—between the scheme's launch in late 2015 and March 2025, minister of state for finance Pankaj Chaudhary said Tuesday. In a written reply in the Rajya Sabha, the minister also said the mopup under the gold monetisation scheme (through medium-and-long-term deposits) was to the tune of 37.81 tonnes during this suggests the gold bond scheme was far more popular than the monetisation one. The government, however, would consider the cost of garnering funds via such gold bonds before issuing any fresh tranche, he added. The government hasn't budgeted any mopup through such bonds this fiscal due to high borrowing costs. 'The recent global geopolitical unrest has impacted gold prices significantly, increasing the cost of borrowing through sovereign gold bonds,' Chaudhary added. PLI Scheme Drives ₹1.76 L crore Investments Actual investment of ₹1.76 lakh crore have been realised till March 2025 across 14 sectors covered under Production Linked Incentive (PLI) schemes, leading to incremental production/sales of over ₹16.5 lakh crore and employment generation of over 12 lakh. The production of mobiles in value terms has increased almost 146% to ₹5.25 lakh crore in 2024-25 from ₹2.13 lakh crore and their exports rose 775% to ₹2 lakh crore in FY25 from ₹22,870 crore in 2020-21. The pharmaceuticals sector has witnessed cumulative sales of ₹2.66 lakh crore which includes exports of ₹1.7 lakh crore achieved in the first three years of the scheme. The scheme has contributed to India becoming a net exporter of bulk drugs ( ₹2,280 crore) from a net importer of ₹1,930 crore. 'A number of foreign companies have established or expanded their operations in India under the PLI scheme. For example, Apple, a global smartphone company, has shifted its suppliers to India viz. Foxconn, Wistron and Pegatron,' the commerce and industry ministry told Lok Sabha. Over ₹35,105cr Tax Demands Raised Under Black Money Law The finance ministry told Parliament Tuesday that the government has raised tax and penalty demands of over ₹35,105 crore from 1,021 assessments and filed 163 prosecution complaints till March 31 under the foreign black money law. The government has recovered ₹338 crore under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, towards tax, penalty, interest between July 1, 2015 and March 31, 2025, MoS for finance Pankaj Chaudhary told Rajya Sabha in a written reply. Renewables Sector Creates Over 600,000 Jobs in 5 Years An estimated 6.61 lakh jobs were created in the last five years from FY21 to FY25 in the renewable energy sector, minister of state for renewable energy Shripad Yesso Naik said in a written reply to the Rajya Sabha on Tuesday. VGF Scheme Extended The power ministry has recently extended the Viability Gap Funding (VGF) scheme for battery energy storage systems for additional 30,000 MWh capacity through the Power System Development Fund, MoS for renewable energy Shripad Yesso Naik informed the Rajya Sabha on Tuesday. Action Taken Against 886 Entities Enforcement action has been taken against 886 entities between April 2024 and June 2025 for fraudulent or unfair trade practices relating to the stock market, minister of state for finance Pankaj Chaudhary told the Rajya Sabha Tuesday.
Time of India
3 hours ago
- Time of India
Parliament watch: From debt to GST to NPA, govt shares key data as Monsoon Session kicks off
Centre Gave up ₹99,000 cr Corporate Tax Revenue in FY24 on Account of Tax Incentives The Finance Ministry Tuesday informed Parliament that the Centre has foregone ₹99,000 crore of corporate tax revenue in FY24 on account of tax incentives. The corporate tax revenue foregone in 2023-24 stood at ₹98,999 crore, followed by ₹88,109 crore and ₹96,892 crore in 2022-23 and 2021-22, respectively, MoS for finance Pankaj Chaudhary said in a written reply to Rajya Sabha . In 2020-21 and 2019-20, the total corporate tax revenue foregone was ₹75,218 crore and ₹8,043 crore, respectively. Explore courses from Top Institutes in Please select course: Select a Course Category Data Science MCA Data Science Design Thinking Management healthcare PGDM Data Analytics Degree Public Policy Leadership Technology others Artificial Intelligence Finance Cybersecurity MBA Project Management Operations Management Others Healthcare CXO Digital Marketing Product Management Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK DABS India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Prof Cert in DS & BA with GenAI India Starts on undefined Get Details Skills you'll gain: Duration: 30 Weeks IIM Kozhikode SEPO - IIMK-AI for Senior Executives India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Postgraduate Cert in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIT Madras CERT-IITM Advanced Cert Prog in AI and ML India Starts on undefined Get Details At $736.3 b, External Debt Hits 19.1% of GDP India's external debt stood at $736.3 billion as of March 2025, which was only 19.1% of gross domestic product and 90.8% of forex reserves, MoS for finance Pankaj Chaudhary told RS Tuesday. 'These debt vulnerability indicators are benign and indicate India's external debt remains sustainable and prudently managed,' he said. He added that external debt of nations rises over time as it is associated with increasing investment and productivity, which has also been the case with India. "India has managed its external debt prudently with the overarching objective of keeping the current account deficit within sustainable limits." PM Internship Scheme: 22,500 Offers Accepted So Far About 71,000 offers were made by companies to the youth under the second round of the PM Internship scheme as of July 17 and about 22,500 were accepted by them, the Rajya Sabha was informed on Tuesday. In a written reply, minister of state for corporate affairs Harsh Malhotra said about 327 companies had posted over 118,000 internship opportunities against over 4,55,000 applications. Live Events No GST Compensation Pending, Except to Arunachal & Manipur The Centre Tuesday informed Parliament that no amount is pending for release of the final GST compensation to states and Union Territories except Arunachal Pradesh and Manipur. In the case of these two states the Centre has not received the certificate of Auditor General, required to release the payment, MoS for finance Pankaj Chaudhary told Rajya Sabha in a written reply. ₹72,275 cr Sovereign Gold Bonds Issued The government issued sovereign gold bonds worth ₹72,275 crore–equivalent of 146.96 tonnes of the precious metal—between the scheme's launch in late 2015 and March 2025, minister of state for finance Pankaj Chaudhary said Tuesday. In a written reply in the Rajya Sabha, the minister also said the mopup under the gold monetisation scheme (through medium-and-long-term deposits) was to the tune of 37.81 tonnes during this period. This suggests the gold bond scheme was far more popular than the monetisation one. The government, however, would consider the cost of garnering funds via such gold bonds before issuing any fresh tranche, he added. The government hasn't budgeted any mopup through such bonds this fiscal due to high borrowing costs. 'The recent global geopolitical unrest has impacted gold prices significantly, increasing the cost of borrowing through sovereign gold bonds,' Chaudhary added. PLI Scheme Drives ₹1.76 L crore Investments Actual investment of ₹1.76 lakh crore have been realised till March 2025 across 14 sectors covered under Production Linked Incentive (PLI) schemes, leading to incremental production/sales of over ₹16.5 lakh crore and employment generation of over 12 lakh. The production of mobiles in value terms has increased almost 146% to ₹5.25 lakh crore in 2024-25 from ₹2.13 lakh crore and their exports rose 775% to ₹2 lakh crore in FY25 from ₹22,870 crore in 2020-21. The pharmaceuticals sector has witnessed cumulative sales of ₹2.66 lakh crore which includes exports of ₹1.7 lakh crore achieved in the first three years of the scheme. The scheme has contributed to India becoming a net exporter of bulk drugs ( ₹2,280 crore) from a net importer of ₹1,930 crore. 'A number of foreign companies have established or expanded their operations in India under the PLI scheme. For example, Apple, a global smartphone company, has shifted its suppliers to India viz. Foxconn, Wistron and Pegatron,' the commerce and industry ministry told Lok Sabha. Over ₹35,105cr Tax Demands Raised Under Black Money Law The finance ministry told Parliament Tuesday that the government has raised tax and penalty demands of over ₹35,105 crore from 1,021 assessments and filed 163 prosecution complaints till March 31 under the foreign black money law. The government has recovered ₹338 crore under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, towards tax, penalty, interest between July 1, 2015 and March 31, 2025, MoS for finance Pankaj Chaudhary told Rajya Sabha in a written reply. Renewables Sector Creates Over 600,000 Jobs in 5 Years An estimated 6.61 lakh jobs were created in the last five years from FY21 to FY25 in the renewable energy sector, minister of state for renewable energy Shripad Yesso Naik said in a written reply to the Rajya Sabha on Tuesday. VGF Scheme Extended The power ministry has recently extended the Viability Gap Funding (VGF) scheme for battery energy storage systems for additional 30,000 MWh capacity through the Power System Development Fund, MoS for renewable energy Shripad Yesso Naik informed the Rajya Sabha on Tuesday. Action Taken Against 886 Entities Enforcement action has been taken against 886 entities between April 2024 and June 2025 for fraudulent or unfair trade practices relating to the stock market, minister of state for finance Pankaj Chaudhary told the Rajya Sabha Tuesday.
