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India Gazette
01-07-2025
- Business
- India Gazette
GST collection rises 6.2% YoY to over Rs 1.85 lakh crore in June
New Delhi [India], July 1 (ANI): The Goods and Services Tax (GST) collection in June rose over 6.2 per cent to over 1.85 lakh crore compared to about 1.74 lakh crore in the same period last year, according to official data released on Tuesday. However, June's GST collection decreased from May's Rs 2.01 lakh crore and after a record collection of Rs 2.37 lakh crore in April 2025. In the month of June, collections of Central-GST, State-GST, Integrated-GST, and cess all rose year-on-year. The domestic GST collections for June 2025 present a nuanced picture, while the overall growth appears muted, possibly due to the prevailing geopolitical uncertainties and their discernible impact on consumer sentiment. The data shows that regions like Nagaland, Sikkim, Tripura, Lakshadweep, and Ladakh have emerged as strong pockets of growth. 'This uplift suggests increased consumer activity and, importantly, a continued thrust on infrastructure spending by the government in these areas, which is a positive indicator for regional development,' said Saurabh Agarwal, Tax Partner, EY India. India's Goods and Services Tax (GST) system has achieved a major milestone in 2024-25, with a record gross collection of Rs 22.08 lakh crore, showing a 9.4 per cent growth over the previous year. According to a release by the finance ministry, the average monthly GST collection stood at Rs 1.84 lakh crore, the highest since GST was launched in 2017. GST collections have steadily increased over the years, rising from Rs 11.37 lakh crore in 2020-21 to Rs 20.18 lakh crore in 2023-24, reflecting stronger economic activity and better compliance. As of April 30, 2025, there are now over 1.51 crore active GST registrations, showing growing participation in the tax system. The recent GST collections reflect a positive trajectory for India's economy, underscoring robust domestic consumption and buoyant import activity. The figures bode well for the country's fiscal health and economic recovery efforts, signalling resilience amidst global uncertainties. The Goods and Services Tax was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017, for five years. (ANI)
The Hindu
01-07-2025
- Business
- The Hindu
GST revenue up 6.2% to ₹1.85 lakh crore in June 2025, slowest growth in 4 years
India's gross Goods and Services Tax (GST) collections stood at a four-month low of ₹1.85 lakh crore in June 2025, 6.2% higher than the collections seen in June of last year, and 8.2% lower than the collections in May 2025. 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.
The Hindu
25-06-2025
- Business
- The Hindu
GST Council set to discuss reducing items in 12% slab
The agenda for the Goods and Services Tax (GST) Council at its next meeting will include deliberations on minimising the 12% tax slab and also finalising the tax treatment on service intermediaries, which could provide the sector relief worth thousands of crores, according to informed sources. Further, while the meeting was initially supposed to be held in June, there has been some back-and-forth between members of the Council over the location of the meeting, leading to delays. It will now likely be held in July 2025, which would be more than six months after the last meeting, which was held in December 2024 in Jaisalmer. According to the rules, the GST Council is meant to meet once every quarter, or three months. 'One of the main agenda items, as part of the overall simplification and rate rationalisation effort, is what to do with the 12% slab,' an official aware of the developments told The Hindu. 'One of the internal recommendations was to minimise the slab or maybe even do away with it entirely.' Doing away with the 12% rate would reduce the number of tax rates under GST to 0%, 5%, 18%, and 28%, not counting the specialised rates of 0.25% on diamonds and 3% on gold and silver, or the additional compensation cess on items in the 28% slab. 'It is improbable that the GST Council will completely abolish the 12% tax slab,' Saurabh Agarwal, Tax Partner at EY India, explained. 'Instead, they are likely to gradually reduce the number of items in this category by shifting them to the 5% slab. Additionally, some items currently taxed at 18% may be moved to the 12% slab.' This adjustment would reflect a change in consumer behaviour, he said, since rising per capita income meant that many products that were once considered discretionary, such as toothpaste and soap, have become everyday necessities. Currently, toothpaste and soap are taxed at 18% and shampoo can be taxed as high as 28%. Input tax credit However, other tax experts say that moving items from the 12% slab to 5% might not always be a good thing for the manufacturers. At 12%, they are eligible for input tax credit, which will likely be revoked if they are moved to 5%. This means the manufacturers would not get credit for the tax they pay on inputs. The Hindu has learnt that the other major item on the agenda of the GST Council would be the taxation of service intermediaries. Currently, service intermediaries are taxed at 18% even when they provide services to companies abroad. This is likely to be removed. An increasingly common occurrence, especially in the IT space, is for the Indian arm of a multinational company to execute an order for the MNC within India. For example, suppose Company A buys a service from Firm X, an MNC based in the U.S. Firm X asks its India arm, Firm Y, to fulfil the order in return for payment from Firm X. In such a scenario, Firm Y is exporting its services to Firm X. Yet, under the current GST law, it is still taxed on those services. 'The current framework continues to tax intermediary services even when rendered to overseas clients, leading to a double whammy,' Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat, said. 'First, it raises costs for Indian service providers, and second, it results in double taxation since Indian importers pay duty on the full value, including what is paid to the intermediary. According to Mr. Mishra, the tax exposure from these service intermediaries is around ₹3,500 crore, making the issue a very significant one for the industry. Given that these services bring in valuable foreign exchange, there is an expectation of treating it as zero-rated supplies,' he said. 'Such treatment would not only help reduce the tax burden and compliance uncertainty but would also be consistent with the approach taken by courts.'
Time of India
16-06-2025
- Business
- Time of India
RedBus appoints Livspace's Saurabh Agarwal as finance chief
Bengaluru: Online bus ticketing platform RedBus has appointed Saurabh Agarwal as its new chief financial officer . Agarwal has more than two decades of experience in financial leadership , corporate strategy and distribution planning across sectors such as healthtech, life insurance and home interiors, the company said. He began his career with Aditya Birla Sun Life Insurance, where he spent over 11 years in senior roles spanning corporate planning, finance operations and distribution strategy. In 2014, he joined the founding team at digital health platform Most recently, he served as group CFO at Livspace . by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now 'Saurabh's track record in enabling high-growth businesses through strong financial acumen and building high-performing teams aligns well with our growth ambitions. As we scale across markets and product lines, his leadership will be key to shaping sound, future-focused financial strategies that power our next phase of growth," said RedBus chief executive Prakash Sangam. 'RedBus is playing a critical role in transforming a complex and fragmented sector. With its scale, category leadership, and focus on tech-led innovation, there is a strong foundation to continue building on," said Agarwal. Live Events According to RedBus, it has cumulative sales of more than 466 million bus tickets globally and a worldwide customer base of around 52 million. It is part of the MakeMyTrip group, which also includes
Economic Times
08-06-2025
- Business
- Economic Times
From July 1, GST returns pending three years can't be filed
ANI Goods and Services Tax (GST) The Goods and Services Tax Network on Saturday cautioned taxpayers that they will not be allowed to file their returns after three years from the due date from next month. In an advisory, it asked taxpayers to reconcile their records and file pending returns before the deadline. The restriction—set to be implemented on the GST portal from July—follows an amendment in the Finance Act, 2023. This will be applicable for various returns including GSTR-1, GSTR-3B and GSTR-9. "The said restriction will be implemented on the GST portal from July 2025 tax period. Hence, the taxpayers are once again advised to reconcile their records and file their GST returns as soon as possible, if not filed till now," the Goods and Services Tax Network (GSTN) said in its advisory. The Central Board of Indirect Taxes and Customs (CBIC) has already communicated to field formations to sensitise taxpayers about the deadline, so that they reconcile their records and file pending returns soon. Experts said the move is aimed at fostering greater discipline in the tax ecosystem and ensuring time-bound compliances.'For businesses, this advisory carries significant implications. It is absolutely imperative to ensure all returns are filed promptly to avoid loss of input tax credit to their buyers and significant penalties,' said Saurabh Agarwal, tax partner, EY. 'Looking ahead, it's highly probable that this three-year window will be further reduced,' Agarwal added. Rajat Mohan, senior partner, AMRG and Associates, said this will also help in restraining retrospective amendments. 'This move marks a definitive closure of the return filing window, aimed at bringing certainty to the tax system and limiting retrospective compliances,' said Mohan. He, however, added that it may severely impact taxpayers who- —due to litigation, system issues or genuine oversight—have pending filings. 'The absence of a redressal mechanism for exceptional cases could lead to permanent denial of input tax credit and financial setbacks,' Mohan said.
