GST collections rise 6.1% YoY to Rs 1.85 lakh crore in June; slowest pace of growth in four years

GST collections for June

GST collections rose to Rs 1.85 lakh crore in June, recording a 6.1 percent increase from the year-ago period--the lowest in four years--according to data released by the government on July 1.

Although collections remained above Rs 1.8 lakh crore, they were lower than the Rs 2 lakh crore mark that was breached in the first two months of FY26.

In April, gross GST collections had hit an all-time high of Rs 2.37 lakh crore but had slowed to Rs 2.01 lakh crore in May, but the pace of growth at 16 percent from the year-ago period was the fastest in 31 months.

“Around 6% growth in GST collections, coupled with less than 4% growth in advance tax collection for first quarter of FY 26 does indicate softening of demand and cautious outlook. One of the reasons could be conservative spending by the consumers which may improve in next couple of months with overall geopolitical situation improving," said Pratik Jain, Partner, Price Waterhouse & Co.

India’s economy continued to show signs of resilience, with manufacturing activity rising to a 14-month high and new export demand scaling one of the highest levels since 2005, as per data from HSBC.

However, industrial performance remains weak, with IIP in the first two months of the year at 1.8 percent compared with 5.7 percent during April-May 2024.

GST, which completes eight years today, has witnessed collections double since 2017-18 to Rs 22.1 lakh crore in 2024-25.