Monday, 15 Sep, 2025
The highest ever GST collection was recorded in April 2025 at ₹2,36,716 crore. Image Source: Getty
The Finance Ministry noted that the tax system has matured significantly over the years, with annual revenues nearly doubling over the last five years.
India’s gross Goods and Services Tax (GST) collections dropped to a four-month low of ₹1.85 lakh crore in June 2025, according to official data released on Wednesday. Despite the monthly dip, collections were still 6.2 percent higher than those recorded in June 2024. However, the figure marked an 8.2 percent decline compared to the previous month’s mop-up, and the year-on-year growth rate for June was the slowest in four years, since June 2021. After adjusting for refunds, net GST revenue for the month stood at ₹1.59 lakh crore, reflecting a modest 3.3 percent increase over June last year. For the first quarter of FY26 (April–June 2025), gross GST collections totalled ₹2.07 lakh crore.
The subdued growth in June comes even as the GST regime marks eight years since its introduction in July 2017. The Finance Ministry noted that the tax system has matured significantly over the years, with annual revenues nearly doubling over the last five years. In FY25, gross GST collections reached a record ₹22.08 lakh crore, up from ₹11.37 lakh crore in FY21, registering a 9.4 percent increase over the ₹20.18 lakh crore collected in FY24. This marks the highest-ever annual GST collection since the rollout of the indirect tax framework.
Source: Ministry of Finance
“The domestic GST collections for June 2025 present a nuanced picture. 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,” said Saurabh Agarwal, Tax Partner at EY India. 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.”
Maharashtra led the nation in GST collections for June 2025, clocking ₹30,553 crore, the highest among all Indian states. The state’s diverse and expansive economy, driven by financial services, real estate, manufacturing, and retail, underpins this strong performance. High urban consumption levels and concentrated corporate activity in major hubs like Mumbai and Pune, coupled with robust tax compliance, have contributed significantly to the state’s revenue. Karnataka emerged as the second-highest contributor, with collections amounting to ₹13,409 crore. The state’s economy is anchored by its flourishing technology ecosystem, e-commerce platforms, and a dynamic logistics sector, largely centered in Bengaluru, India’s Silicon Valley.
Gujarat secured third place with ₹11,404 crore, supported by its strong industrial foundation, especially in manufacturing, chemicals, and exports. Tamil Nadu followed closely with ₹10,676 crore, drawing strength from its diverse industrial base spanning automobiles, textiles, and electronics. Haryana rounded out the top five with GST collections of ₹9,959 crore, reflecting the growing influence of its industrial corridors and expanding service sector, particularly in the National Capital Region (NCR).
The introduction and implementation of the Goods and Service Tax was a turning point in India’s history of taxation. In a diverse and federal nation like India, where many tax laws were unified into a single system, the adoption of this complete system was especially noteworthy. The GST is a value-added tax applied on the majority of goods and services sold for domestic consumption. Consumers pay the GST, but businesses that provide products and services remit it to the government. GST is levied on the 'supply' of goods or services, as opposed to the prior concept of levy on the manufacture of things, the sale of goods, or the provision of services. The rates of CGST, SGST, and IGST are mutually agreed upon by the Centre and the States. The rates are announced based on the GST Council's suggestion. In May 2015, the GST (122nd Constitutional Amendment) Bill, 2014 was enacted. It was enacted as the Constitution (101st Amendment) Act, 2016, and went into force on September 16, 2016. The GST was implemented on July 1, 2017.
The highest ever GST collection was recorded in April 2025 at ₹2,36,716 crore. The GST revenue collection was lowest in June 2021 at ₹92,800 crore.
The government’s tax revenue has seen a significant boost, driven primarily by Goods and Services Tax (GST) collections. According to the Economic Survey for FY25, GST emerged as the leading source of revenue for 23 states from their Own Revenue Receipts, with Manipur and Nagaland relying on it the most—at 78 percent and 72 percent, respectively. Over the past seven years, the GST Council has convened 55 times, making key recommendations on rate revisions, compliance simplifications, and trade facilitation to support taxpayers. The Union Budget echoed this sentiment, proposing amendments to the Finance Bill to further refine the tax framework.
