India's GST Collection For June 2025 Reflects 6.2% Annual Growth Despite Monthly Decline

India's Goods and Services Tax (GST) collection for June reached Rs 1.85 lakh crore, reflecting a 6.2% rise from the previous year, according to government data released on Tuesday. However, this figure shows a decline when compared to the preceding months of April and May 2025.

In April 2025, GST collections hit a record high of Rs 2.37 lakh crore, followed by Rs 2.01 lakh crore in May. Despite the month-on-month decrease, the overall annual collection for FY25 has shown significant growth.

Record Annual Growth in GST Collection

The GST system, which was implemented in July 2017, has seen its highest-ever annual collection in FY25. The total collection reached Rs 22.08 lakh crore, marking a substantial increase from Rs 11.37 lakh crore in FY21.

This growth represents a year-on-year increase of 9.4% compared to the Rs 20.18 lakh crore collected in FY24. The government highlighted that GST collections have doubled over the past five years.

Eight Years of GST Implementation

As GST completes eight years since its rollout, it continues to be a significant source of revenue for the government. The consistent growth in collections underscores its importance in India's tax framework.

The indirect tax system has evolved over these years, contributing to the country's economic landscape by streamlining tax processes and increasing compliance.

The steady rise in GST collections reflects an expanding economy and improved compliance among taxpayers. This trend is expected to continue as more businesses come under the GST regime.

Overall, India's GST system remains a crucial component of its fiscal policy, with collections reaching new heights each year since its inception.