India collected ₹1.85 lakh crore in GST in June 2025. This marks a 6.1% increase compared to the same month last year. It’s a solid number—but also the slowest year-on-year growth seen in four years.
June’s GST collections stayed above ₹1.8 lakh crore, showing continued strength. However, they fell short of the ₹2 lakh crore mark crossed in April and May this financial year.
In April, GST touched an all-time high of ₹2.37 lakh crore. May brought in ₹2.01 lakh crore. Despite the dip in June, overall collections remain strong for FY26.
GST turns 8: From ₹11 lakh crore to ₹22 lakh crore
This June, the GST system completes eight years. When it launched in 2017, many doubted it. But numbers speak louder. In 2017-18, GST brought in ₹11 lakh crore. By 2024-25, collections have doubled to ₹22.1 lakh crore.
This shows how India’s tax system has matured—and how digital tracking, better compliance, and stricter rules are now paying off.
Good signs: Manufacturing and exports booming
Even as GST growth slowed in June, the Indian economy still looks strong.
Manufacturing activity hit a 14-month high, and export demand is among the best since 2005, according to HSBC. These are signs that businesses are moving, even if the tax numbers don’t fully reflect it yet.
Also Read Double in Just 5 Years! Gross GST Collection Hits ₹22.08 Lakh Cr in FY25
But IIP growth is weak—why it matters
There’s a flip side too. The Index of Industrial Production (IIP) grew just 1.8% in April and May 2025. That’s much lower than 5.7% growth during the same period last year.
This slow industrial growth could be why GST collections saw less growth in June. When factories produce less, they pay less tax. Simple.
What this means for India
GST is still bringing in big numbers. But we can’t ignore the slowdown in growth.
At 6.1%, this is the weakest June GST growth in four years. It’s a reminder that while headline numbers look great, we need to watch what’s happening on the ground—especially in factories and markets.
India’s economy is still resilient. But the June data tells us: it’s not time to relax.
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