GST mop-up grows 14% to Rs 1.95 lakh crore in June

New Delhi: GST collections rose 14 percent to about Rs 1.95 lakh crore in June on higher tax mop-up from imports as well as domestic supplies, government data showed on Wednesday.

Gross Goods and Services Tax (GST) revenues were over Rs 1.94 lakh crore in May and Rs 1.71 lakh crore in June 2025.

As per the data, gross collections from domestic transactions were up 6.5 percent to about Rs 1.35 lakh crore. These include central GST (CGST), state GST (SGST) and integrated GST (IGST) collection of Rs 37,376 crore, Rs 45,116 crore, and Rs 52,282 crore, respectively.

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GST revenue from imports surged 34.6 percent to Rs 60,038 crore in June.

Total refunds were up 29.1 percent at Rs 32,436 crore in June.

After adjusting refunds, net collection grew 11.2 percent 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 percent growth in gross import revenue, significantly outpacing the 6.5 percent growth in domestic collections, reflecting sustained import activity despite an uncertain global environment. Equally encouraging is that this growth came alongside a 29.1 percent increase in refunds, indicating that strong revenue growth is being achieved without affecting liquidity for businesses," Nagpal said.

Introduced on July 1, 2017, GST replaced a complex system of 17 central and state taxes and 13 cesses with a unified indirect tax framework. GST completed nine years of implementation this month.

During the first quarter of the current fiscal year, gross GST collection grew 8.4 percent to about Rs 6.32 lakh crore. This includes a 2.8 percent growth in tax revenues from domestic transactions and a 26.2 percent growth in imports.

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.

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"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.

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.

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 percent in June and 26.2 percent 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.

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