GST collections July 2025 rise 7.5% to ₹1.96 lakh crore, says Centre

The Central government’s gross revenue from the Goods and Services Tax (GST) grew to ₹1.96 lakh crore in July, up 7.5% from the collections in July last year, and 6% higher than the collections in June 2025.

Refunds under the system, however, surged by nearly 67% to ₹27,147 crore in July 2025 as compared to July last year.

”It’s heartening to see GST refunds picking up, not just for exports but also for domestic supplies,” Abhishek Jain, Indirect Tax Head & Partner at KPMG said. “This reflects maturity of the GST regime. Higher refunds on domestic supplies could be from excess tax payments, inverted duty structures, and other adjustments. The increased refunds should aid cash flows for businesses.”

The higher refunds also meant that the government’s net GST revenue stood at ₹1.7 lakh crore, 1.7% higher than the net amount collected in July 2024. This, according to tax analysts could become a problem for state governments.

“The growth in net monthly collection is only 1.7% as against the year-to-date growth of 8.4%, though partly attributed to significant increase in refunds,” Pratik Jain, Partner at Price Waterhouse & Co said. “After a tepid growth in the previous month as well, the GST council may like to discuss the possible measures to augment the revenues in the next meeting. With compensation cess going away, the States may also be a bit more concerned about the slowdown in GST collections.

The GST Council is expected to meet some time in August, although the government has not yet announced the date of the meeting. Among the key items on the agenda is the rationalisation of GST rates and the simplification of the tax regime.   

In the gross revenue, the gross domestic revenue stood at ₹1.43 lakh crore in July 2025 — 6.7% higher than in July 2024 — while the gross import revenue stood at ₹52,712 crore, up 9.7% from the previous year. 

Another notable aspect of July’s GST collection figures was that it was more evenly balanced across states than before.

“The gross GST collections have increased by around 6% on a month-on-month basis and around 7.5% on a year-on-year basis,” Karthik Mani, Partner – Indirect Tax at BDO India said. “The collections in almost all large states have grown in line with these numbers and this time it was a collective effort as opposed to growth in collections in few major States compensating for lower growth in few other States.”