01-07-2025
- Business
- New Indian Express
June sees slump in GST revenue growth; net collection up only 3.3%
After showing stellar rise in April and May, the growth in GST revenue dropped to low single digit in June primarily due to low mop-up from domestic transactions, indicating moderation in economic activities.
The gross GST collection showed a growth of 6.2% to Rs 1.85 lakh crore in June 2025 compared to Rs 1.74 lakh crore a year ago. Gross collections from domestic transactions – which account for 75% of the monthly collections – grew by only 4.6% during the month. Collections from imports/exports rose by 11.4%, bringing some semblance of respectability. The net GST collection during the month was even worse, growing at a paltry 3.3% to Rs 1.59 lakh crore, as refunds grew by 28.5%.
The slump in June comes after two back-to-back months of over Rs 2 lakh crore collection in April and May.
Gross GST collections in May rose by 16.5% to Rs 2.01 lakh crore – only the third time since GST came into force in July 2017. In April, gross GST collections hit an all-time high of Rs 2.36 lakh crore in April 2025, 12.6% higher than the collection of Rs 2.10 lakh crore in April 2024. Net GST revenues in May showed even better buoyancy as the same increased by 20.4% to Rs 1.74 lakh crore.
'After two successive months of Rs 2 Lakhs Crore plus GST revenues and double-digit growths, Rs.1.85 lakh crore collections in June 2025 seems a little dampening,' says Vivek Jalan, partner, Tax Connect Advisory Services LLP. However, Jalan says that the year-to-date growth of 11.8% in GST still gives a tax buoyancy of more than 1% which means that India is still in the 'Goldilocks situation' amidst global turmoil.
