India’s Goods and Services Tax (GST) revenue for July 2025 rose by 7.5% year-on-year to ₹1.96 lakh crore, according to official data released by the finance ministry. This marks a recovery in the tax collection momentum after growth had slowed to a 6.1% rate in June—the lowest since the pandemic.
Despite a sequential dip from April’s all-time high of ₹2.37 lakh crore and May’s ₹2.01 lakh crore, the July figure reflects resilience in revenue, maintaining collections above ₹1.8 lakh crore for the seventh consecutive month.
GST Collection Trend FY26 (in ₹ Lakh Crore):
April: ₹2.37 lakh crore
May: ₹2.01 lakh crore
June: ₹1.85 lakh crore
July: ₹1.96 lakh crore
The average monthly GST collection in Q1 FY26 stood at approximately ₹2.1 lakh crore, indicating that July’s figure, though higher than June, is slightly below the quarterly average.
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Refunds See Notable Uptick
Industry experts welcomed the uptick in GST refunds, especially for domestic supplies. According to Abhishek Jain, Partner & Indirect Tax Head at KPMG,
“It’s heartening to see GST refunds picking up, not just for exports but also for domestic supplies. This reflects maturity of the GST regime.”
He noted that higher refunds could stem from excess tax payments, inverted duty structures, and other adjustments—providing much-needed cash flow relief to businesses.
Quick Take:
July’s 7.5% GST growth signals a stabilising tax environment after June’s slowdown. Continued collections above ₹1.8 lakh crore, alongside improving refund mechanisms, indicate growing efficiency in India’s indirect tax system. The sustained inflow is crucial for both central and state fiscal management amid evolving economic conditions.
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