GST Collections Rise By 6.2% In June To ₹1.85 Lakh Crore; Marks 8 Years Of Reform

India’s Goods and Services Tax (GST) collections rose to Rs 1.85 lakh crore in June 2025, registering a 6.2% increase compared to June last year, according to official data released on Tuesday.

Despite the impressive figure, the collections fell short of the record Rs 2.37 lakh crore in April and ₹2.01 lakh crore in May.

GST revenue doubles over five years

Marking eight years since GST’s rollout on July 1, 2017, the government highlighted the tax system’s significant growth and impact.

Annual GST collections have doubled in five years, reaching ₹22.08 lakh crore in FY25, up from ₹11.37 lakh crore in FY21.

The average monthly GST collection now stands at ₹1.84 lakh crore in FY25, compared to just ₹95,000 crore per month in FY21.

PM Modi: GST has reshaped India’s economic landscape

In a statement on X, Prime Minister Narendra Modi called GST a ‘landmark reform’ that transformed India’s economy.

“By reducing the compliance burden, it has greatly improved the Ease of Doing Business, particularly for small and medium enterprises,” PM Modi said.

“GST has also served as a powerful engine for economic growth, while fostering true cooperative federalism by making states equal partners in this journey to integrate India’s market,” he added.

Taxpayer base has more than doubled since 2017

Since its launch, the number of taxpayers has more than doubled, rising from 60 lakh to over 1.51 crore.

The government credits the simplified tax structure and unified national framework for the broad increase in participation and compliance.

The GST system replaced multiple indirect taxes, including excise duty, VAT, and service tax, creating a unified national tax.

This shift eliminated the cascading effect of taxes, reduced compliance costs, and enabled seamless movement of goods across state borders.

According to a Deloitte survey, 85% of taxpayers have reported a positive experience with GST, citing improvements in transparency and the ease of doing business.

GST benefits extend to households and logistics

A Finance Ministry study found that GST enabled Indian households to save at least 4% on their monthly expenses, primarily by reducing the cost of essential goods.

In the logistics sector, GST has delivered transformational change.

The removal of state-border checkpoints has cut transport times by over 33%, lowered fuel costs, and reduced congestion on major highways.

Long queues of trucks and corruption-prone barriers have largely disappeared.

GST continues to drive India’s economic momentum

As India celebrates eight years of GST, the consistent rise in collections and growing taxpayer base reflect strong compliance, improved transparency, and robust economic activity.

With GST collections hitting record highs and showing steady year-on-year growth, the government reaffirmed its confidence in the tax system as a pillar of economic reform and national integration.

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