Growth in net Goods and Services Tax (GST) receipts in June slumped sharply to 3.3 per cent from a robust 20.4 per cent rise in May with collections totaling Rs 1.59 trillion, according to data released by the finance ministry on Tuesday.
Sequentially, net GST revenues fell by 8.09 per cent in June compared to Rs 1.73 trillion collected in May.
However, net GST collections have still risen 10.7 per cent in the first quarter (Q1) of 2025-2026, reaching Rs 5.42 trillion, with gross collections rising nearly 12 per cent to Rs 6.22 trillion.
June's net revenues from the indirect tax, based on transactions carried out in May, were also impacted by the back of sharp 28.4 per cent rise in total refunds to Rs 25,491 crore.
Net collections from domestic transactions were up 3.7 cent to Rs 1.26 trillion, down from Rs 1.31 trillion collected in May which marked a 9.7 per cent uptick.
Refunds had declined 4 per cent year-on-year to Rs 27,210 crore in May.
Gross GST collections in June climbed 6.2 per cent to Rs 1.84 trillion as compared with a 16.4 per cent growth in May, which had clocked gross revenues of Rs 2.01 trillion.
Out of the total refund of Rs 25,491 crore issued in June, Rs 12,643 crore was released to domestic businesses, marking a 14.1 per cent increase year-on-year, while Rs 12,848 crore was refunded to exporters, reflecting a sharp 46.4 per cent rise.
"A 6.2 per cent growth in gross GST collections, coupled with the less than 4 per cent growth in advance tax collection for first quarter of FY26, does indicate softening of demand and a cautious outlook. One of the reasons could be conservative spending by the consumers which may improve in the next couple of months with the overall geopolitical situation improving," said Pratik Jain, Partner, Price Waterhouse & Co LLP.
In June, 13 states recorded GST revenue growth above the national average of 4.6 per cent, including Haryana (10 per cent), Bihar (12 per cent), Sikkim (15 per cent), Nagaland (71 per cent), Tripura (18 per cent) and Jharkhand (10 per cent).
-- Monika Yadav, Business Standard
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