New Delhi, July 2 -- Gross Goods and Services Tax (GST) revenue in June neared Rs.1.85 lakh crore, a moderate 6.2% annualised increase because of high refunds and temporary softening of demand amid adverse geopolitical developments, official data showed on Tuesday. The collections in the first quarter of the current financial year, however, saw robust double-digit growth of about 12% at Rs.6,22,363 crore, reflecting overall resilience of the economy. On the occasion of GST's eighth anniversary on July 1, Prime Minister Narendra Modi said the new indirect tax regime stands out as a "landmark reform" that has reshaped India's economic landscape. "By reducing the compliance burden, it has greatly improved the Ease of Doing Business, particularly for small and medium enterprises [SMEs]. 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 said in a post on X. According to the government data released on Tuesday, gross GST collections rose to Rs.1,84,597 crore in June 2025 as compared to Rs.1,73,813 crore in the same month of 2024. After an over 28% jump in refunds to Rs.25,491 crore in June 2025, the net GST revenue stood at Rs.1,59,106 crore with just a 3.3% increase as compared to Rs.1,53,959 crore net collection in June 2024. Experts said the revenue figures in June, which reflected the actual business activities of May, were seemingly hit by factors such as the India-Pakistan conflict and tariff actions of the US. "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 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 at Price Waterhouse & Co. LLP. "While the growth in the current month's collections seems moderate compared to earlier months, it is essential to note that the growth during the quarter has been very positive," Deloitte India partner - indirect taxes M.S. Mani said. "The moderate growth in collections is also reflected in the low single digit increases in major states like Maharashtra (6%), Karnataka (8%) and Tamil Nadu (4%), and the decline in monthly collections in Gujarat (-1%) and Uttar Pradesh (-4%)," he added....