India’s gross Goods and Services Tax (GST) collections stood at a four-month low of ₹1.85 lakh crore in June 2025, 6.2% higher than the collections seen in June of last year, and 8.2% lower than the collections in May 2025.

The growth rate of gross collections in June 2025 was the lowest growth in four years, since June 2021. The latest data also shows that collections in the first quarter of this financial year (April-June 2025) stood at ₹2.07 lakh crore.

The GST data shows that, once refunds are accounted for, the net GST collections figure stood at ₹1.59 lakh crore in June 2025, 3.3% higher than the comparable figure in June 2024.

“The domestic GST collections for June 2025 present a nuanced picture,” Saurabh Agarwal, Tax Partner at EY India, said. “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,” he said.

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.

“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,” Pratik Jain, Partner, Price Waterhouse & Co LLP said.