July GST collections surge by 7.5% to reach an impressive Rs 1.96 lakh crore
India's GST Collections See 7.5% Year-on-Year Growth in July 2025
India's Goods and Services Tax (GST) collections for July 2025 reached a notable figure of Rs 1.96 lakh crore, marking a 7.5% increase compared to the same month in the previous year. This growth was primarily driven by higher domestic revenues and increased tax from imports.
The domestic GST collections grew by 6.7% to Rs 1.43 lakh crore, while tax from imports rose sharply by 9.5% to Rs 52,712 crore. The increase in collections was evident across various states as well, with Meghalaya, Nagaland, Sikkim, Andhra Pradesh, Tripura, and Madhya Pradesh all reporting significant growth.
Maharashtra, the highest GST contributor, collected Rs 30,590 crore in July 2025, up 6% from the previous year. Other significant contributors like Bihar and Punjab and Haryana also reported a 16% and 12% increase in GST collections respectively.
However, the net GST growth was moderated by a sharp 66.8% surge in refunds. The total refunds for July 2025 stood at Rs 27,147 crore, up from Rs 16,275 crore in July 2024. Domestic refunds grew by 117.6%, while import-related refunds rose by 20%.
After adjusting for refunds, the net GST revenue for July 2025 was Rs 1,68,588 crore, just 1.7% higher than Rs 1,65,800 crore a year ago. For the April-July period in 2025, net GST revenue rose 8.4% to Rs 7.11 lakh crore from Rs 6.56 lakh crore in the same period in 2024.
The government’s FY 2025-26 budget had projected an 11% increase in GST revenue for the year, encouraging continued momentum. The overall gross collection increase was a rebound maintaining moderate growth after earlier months of double-digit growth earlier in the financial year.
In conclusion, strong domestic business activity and import taxes drove the 7.5% rise in GST collections in July 2025, though higher refund payouts softened net revenue growth. The growth in collections is a positive sign for the Indian economy and indicates a resilient recovery from the pandemic's impact.
[1] India GST Collections July 2025
[2] GST Collections July 2025: Key Highlights
- The increased tax from imports made a substantial contribution to the growth in GST Collections in July 2025.
- The growth in GST Collections in July 2025, influenced by robust domestic business activity and higher imports, has significant implications for the finance and industry sectors.
