How Did GST Collections Rise 7.5% in July to Rs 1.96 Lakh Crore?
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Synopsis
India's GST collections have shown a robust growth of 7.5% in July, reaching Rs 1.96 lakh crore. This growth reflects a steady economic activity despite a slower growth pace than recent months. Explore the insights behind these figures and their implications for the economy.
Key Takeaways
- GST collections rose to Rs 1.96 lakh crore in July.
- 7.5% year-on-year growth reflects economic resilience.
- Strong performance from smaller northeastern states.
- Maharashtra remains the leading GST contributor.
- Manufacturing output reached a 16-month high.
Mumbai, Aug 1 (NationPress) The Goods and Services Tax (GST) collections in India reached Rs 1.96 lakh crore in July, reflecting a 7.5% increase compared to the same month last year, based on data disclosed by the government on Friday.
This rise was fueled by enhanced revenue from both domestic transactions and imports, which indicates sustained economic activity, although the growth rate was less vigorous than in previous months.
For the period spanning April to July this year, the overall GST revenue totaled Rs 8.18 lakh crore, representing a 10.7% increase from Rs 7.39 lakh crore during the corresponding time frame in 2024.
In July, the gross GST collection included Rs 35,470 crore from Central GST, Rs 44,059 crore from State GST, Rs 1,03,536 crore from Integrated GST (with Rs 51,626 crore from imports), and Rs 12,670 crore from cess (including Rs 1,086 crore from imports).
July marked the seventh successive month with collections exceeding Rs 1.8 lakh crore, although this figure was below the Rs 2.1 lakh crore average observed in the first quarter of FY26.
The GST receipts reached a peak of Rs 2.37 lakh crore in April before declining to Rs 2.01 lakh crore in May.
After accounting for refunds, the net GST revenue for July was Rs 1,68,588 crore, which is merely 1.7% higher than Rs 1,65,800 crore recorded a year prior.
This moderate growth is attributed to a significant 66.8% increase in refunds, amounting to Rs 27,147 crore for the month, compared to Rs 16,275 crore in July 2024.
For the April–July timeframe, net GST revenue climbed 8.4% to Rs 7.11 lakh crore, up from Rs 6.56 lakh crore the previous year.
Performance varied across states, with smaller northeastern states showing remarkable growth. Tripura led with a 41% increase, followed by Meghalaya (26%), Sikkim (23%), and Nagaland (22%).
Among larger states, Madhya Pradesh noted an 18% increase, Bihar 16%, Andhra Pradesh 14%, and both Punjab and Haryana 12% each.
Maharashtra, the top contributor to GST, collected Rs 30,590 crore in July, representing a 6% increase from the previous year.
Karnataka and Tamil Nadu experienced growth of 7% and 8% respectively, while Gujarat saw a modest 3% rise.
Conversely, some regions experienced declines. Manipur’s GST collections plunged 36%, Mizoram’s fell 21%, and both Jammu and Kashmir and Chandigarh recorded a 5% decrease.
Delhi and Uttar Pradesh posted slight growth of 2% and 7% respectively.
Despite global challenges, manufacturing activity in July remained strong, with output soaring to a 16-month high of 59.1, bolstering overall economic momentum.
Point of View
It’s crucial to recognize the positive trajectory of GST collections amidst global economic pressures. This trend reflects not just government efficiency but also consumer confidence. However, it’s important to address regional disparities and ensure balanced growth across all states. The focus should now be on sustaining this momentum for a robust economic future.
NationPress
06/10/2025
Frequently Asked Questions
What is the GST collection for July?
India's GST collection for July reached Rs 1.96 lakh crore, marking a 7.5% increase from the previous year.
What are the main drivers of GST growth?
The growth in GST collections is mainly driven by increased revenue from domestic transactions and imports.
How does July 2024 compare to July 2023?
In July 2024, the GST collections rose by 7.5% compared to July 2023, reflecting steady economic activity.
Which states showed significant growth in GST collections?
Smaller northeastern states like Tripura, Meghalaya, and Sikkim reported significant growth in GST collections.
What was the net GST revenue for July?
After refunds, the net GST revenue for July stood at Rs 1,68,588 crore, which is a 1.7% increase from the previous year.
