India’s June GST collections increased 13.9 percent year-on-year to ₹1.95 lakh crore, driven mainly by a 34.6 percent surge in import IGST. Domestic collections grew at a slower 6.5 percent pace. The rise reflects higher import values amid currency depreciation and elevated global prices rather than broad domestic growth.
June GST collections reflect economic activity in May. Import growth in crude, petroleum products and gold accounted for much of the increase, with gold prices up nearly 60 percent year-on-year. The government raised the gold import duty from 6 percent to 15 percent on May 13, contributing to the tax base.
The rupee fell almost 6 percent against the dollar since late February, while non-oil imports rose 14.5 percent amid higher freight costs. These factors mechanically boosted import GST collections.
India’s eight core industries grew only 2.8 percent in Q1 FY27, down from around 6 percent a year earlier. The HSBC Manufacturing PMI stood at 54.2, the second-lowest reading in 13 months.
GST has expanded the taxpayer base from 66 lakh in 2017 to over 1.65 crore now, though issues around input tax credit and revenue sharing persist.
