Tue Jul 01 12:56:23 UTC 2025: **Summary:**

India’s gross Goods and Services Tax (GST) collections reached a four-month low of ₹1.85 lakh crore in June 2025, marking a 6.2% increase compared to June 2024 but an 8.2% decrease from May 2025. This represents the lowest growth in four years. Net GST collections, after refunds, were ₹1.59 lakh crore, a 3.3% rise from the previous year. Experts suggest geopolitical uncertainties and cautious consumer sentiment may be contributing factors. While some regions showed strong growth, the overall data points to a possible softening of demand.

**News Article:**

**India’s GST Collections Hit Four-Month Low Amid Economic Uncertainty**

**New Delhi, July 1, 2025** – India’s gross Goods and Services Tax (GST) collections dipped to ₹1.85 lakh crore in June 2025, the lowest in the last four months, according to official data released today. While the figure represents a 6.2% increase compared to June 2024, it signifies an 8.2% decrease from May 2025. This also marks the slowest growth rate in four years, dating back to June 2021.

The latest data reveals that GST collections for the first quarter of this financial year (April-June 2025) totaled ₹2.07 lakh crore. Net GST collections, after accounting for refunds, amounted to ₹1.59 lakh crore in June 2025, a modest 3.3% rise compared to the same period last year.

Experts suggest the muted growth reflects broader economic anxieties. “The domestic GST collections for June 2025 present a nuanced picture,” said Saurabh Agarwal, Tax Partner at EY India. “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.”

While regions like Nagaland, Sikkim, Tripura, Lakshadweep, and Ladakh demonstrated robust growth in GST collections, other indicators raise concerns. “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,” commented Pratik Jain, Partner at Price Waterhouse & Co LLP.

The lower GST collections raise questions about the overall health of the Indian economy and potential implications for government revenue and spending in the coming months.

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