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GST Collections Hit ₹1.96 Lakh Crore in July 2025, But Net Growth Slows Sharply to 1.7%.

Economy Business | Dated: 02 Aug 2025

In July 2025, India’s goods and services tax (GST) system garnered a record gross collection of approximately ₹1.96 lakh crore, marking a steady 7.5% year-on-year rise, despite ongoing global uncertainties—highlighting stable domestic consumption and import activity. However, a sharp surge in refunds eroded growth, pushing net GST revenue to just ₹1.69 lakh crore, or a modest 1.7% increase from July 2024.

🎯 Key Highlights:

  • - India’s gross GST revenue constituted ₹1.95–1.96 lakh crore in July 2025, up from ₹1.82 lakh crore a year prior. While the headline collection indicator rose by 7.5%, the net realisation—after accounting for ₹27,147 crore in refunds—registered only a 1.7% increase to ₹1.69 lakh crore, underscoring that a large share of the collection was returned to taxpayers.
  • - Domestic GST revenues rose at a moderate 6.7%, totaling around ₹1.43 lakh crore, whereas GST on imports jumped 9.5% YoY, touching ₹52,712 crore, buoyed by higher import volumes and increased consumption of imported goods. Notably, net revenue from domestic sources saw a slight contraction, pointing to softening internal demand or compliance issues amid rising refund claims.

💡 Other Important Facts:

  • (i) Within total collections, IGST accounted for the largest slice—about ₹1.03 lakh crore, followed by SGST at ₹44,059 crore, CGST at ₹35,470 crore, and compensation cess of ~₹12,670 crore. Refund outflows soared by 66.8%, consistent with earlier trends and likely due to excess input tax credits, inverted duty structures, or procedural timing effects. This mismatch heavily weighed on net receipts.
  • (ii) For the April–July 2025 window, gross GST mop-up reached ₹8.18 lakh crore, up 10.7% YoY, while net collections touched ₹7.11 lakh crore, rising 8.4%. While the cumulative figures suggest continued fiscal strength, the dip in net growth rate is emerging as a fiscal warning, especially if refund trends persist through H2.
  • (iii) State-wise trends reveal disparate performance—Madhya Pradesh (+18%), Andhra Pradesh (+14%), and Bihar (+16%) recorded double-digit gains, while Maharashtra (+6%), Karnataka and Tamil Nadu (+7‑8%) saw slower momentum. Telangana, Delhi, and Gujarat posted modest growth in the low single digits. On the downside, states like Manipur (‑36%), Mizoram (‑21%), and Jharkhand (‑3%) suffered steep declines—reinforcing the need for deeper analysis of intra-state compliance and economic divergence.

📚 Test Your Knowledge:

What was the total gross GST (Goods and Services Tax) collection reported by the Government of India for July 2025?

Correct Answer: ₹1.96 lakh crore

🚀 Quick Recap: