Goods and Services Tax (GST) collections rose 13.9 per cent year-on-year to ₹1,94,812 crore in June 2025, according to official data released on Wednesday, 1 July. The strong performance was driven largely by a sharp surge in import-related revenues, marking a significant acceleration from the previous month's modest 3 per cent growth.

Key Numbers at a Glance

Gross GST revenue in June stood at ₹1,94,812 crore, up from ₹1,71,105 crore in June 2024. Net collections — after accounting for refunds — rose 11.2 per cent to ₹1,62,377 crore, compared with ₹1,45,984 crore in the corresponding month last year.

Total GST refunds climbed nearly 30 per cent to ₹32,436 crore during the month, against ₹25,121 crore in June 2024. Domestic refunds surged 42.9 per cent to ₹17,767 crore, while export refunds processed through ICEGATE rose 15.6 per cent to ₹14,669 crore.

Imports Lead the Charge

The headline growth was underpinned by a 34.6 per cent jump in GST revenue from imports, which reached ₹60,038 crore — reflecting robust cross-border trade activity. By contrast, gross domestic GST revenue grew at a comparatively moderate 6.5 per cent to ₹1,34,774 crore.

On a net basis, domestic GST revenue grew just 2.6 per cent to ₹1,17,007 crore, while net customs-linked GST revenue surged 42.2 per cent to ₹45,370 crore. The divergence between import and domestic growth signals that external trade is currently a stronger engine for GST buoyancy than consumer-facing activity at home.

Q1 FY27 Cumulative Picture

On a cumulative basis, gross GST collections for the April–June 2025 quarter — the first quarter of FY27 — rose 8.4 per cent to ₹6,31,699 crore, from ₹5,82,542 crore in the same period of the previous fiscal year. Net GST revenue for the quarter increased 7.1 per cent year-on-year to ₹5,40,218 crore, while total refunds for the three-month period rose 16.8 per cent to ₹91,482 crore.

Notably, May 2025 gross collections had come in at ₹1,94,184 crore — a marginal 3 per cent rise over ₹1,88,172 crore in May 2024 — making June's acceleration a meaningful step-up in momentum.

What This Signals

The June data reinforces that India's GST architecture is increasingly sensitive to import volumes, which can amplify revenue in high-trade months but also introduce volatility. The steep rise in refunds — particularly domestic refunds growing at 42.9 per cent — warrants watching, as it partly offsets gross collection gains and reflects businesses claiming input tax credits at pace. As the government targets higher fiscal consolidation in FY27, sustaining this collection trajectory through the remainder of the year will be critical.