GST collections climb 14% to ₹1.95 lakh crore in June on strong domestic demand
June gross GST hit ₹1.95 lakh crore, up 14% YoY, driven by robust domestic consumption of ₹1.34 lakh crore. Imports rose 34.6% to ₹60,038 crore; net collections up 11.2% to ₹1.62 lakh crore after refunds surged 29.1%. GST 2.0 rate cuts absorbed by higher transaction values, with ITC and inverted duty structure on July Council agenda.
What happened
June GST collections rose 14% YoY to ₹1.95 lakh crore on robust domestic consumption, reflecting strong consumer demand. GST 2.0 rate cuts absorbed by higher
Key facts
- ₹1.95 lakh crore June collections
- 14% YoY gross growth
- ₹1,34,774 crore domestic
- ₹60,038 crore imports up 34.6%
- net ₹1,62,377 crore up 11.2%
- refunds ₹32,436 crore up 29.1%
Why this matters
Strong consumption momentum and pending ITC/inverted-duty reforms on the July Council agenda create a favorable backdrop for expansion, M&A, and margin-optimization plays in retail.
What to watch
- July GST Council decision on ITC and inverted duty structure
- Monsoon progress and rural demand signals
- Rupee/import cost trajectory given 34.6% import surge
- Refund processing speed—net collections drag if refunds keep rising
- Q1 FY26 retail earnings for volume vs value split confirmation
- Retailers accelerate festive inventory buildup and channel restocking
- Working capital tied up as refund cycles (up 29.1%) strain cash conversion
- FMCG/durables reprice SKUs to capture rate-cut arbitrage before Council action
- Discretionary retail expands store footprint on demand confidence