NEW DELHI: After a moderate performance in June, India’s Goods and Services Tax (GST) revenue growth continued to slow in July 2025, with net collections rising only 1.7% year-on-year to Rs 1.69 lakh crore. The subdued performance was largely due to stagnant revenue from domestic transactions, even as revenue from imports showed double-digit growth.
The gross GST revenue in July stood at Rs 1.96 lakh crore, up 7.5% from Rs 1.82 lakh crore collected in the same month last year. However, after adjusting for refunds, net GST revenue came in at Rs 1,68,588 crore, marginally higher than Rs 1,65,800 crore collected in July 2024.
Domestic net revenue remained flat, declining marginally by 0.2% to Rs 1.26 lakh crore, indicating a possible slowdown in domestic consumption or lower tax compliance. On the other hand, net revenue from imports rose by 7.5% to Rs 42,548 crore, driven by a 9.7% jump in gross IGST and cess collections on imported goods.
Refunds continued to weigh on net revenue, with total GST refunds in July surging 66.8% to Rs 27,147 crore compared to Rs 16,275 crore a year ago. Refunds for domestic transactions more than doubled to ₹16,983 crore, while export-related refunds also rose 20% year-on-year.
Among components, IGST accounted for the largest share of total GST revenue at Rs 1.03 lakh crore, followed by SGST at Rs 44,059 crore and CGST at ₹35,470 crore. Compensation cess contributed Rs 12,670 crore.
On a cumulative basis, gross GST collections in the April–July 2025 period rose 10.7% year-on-year to Rs 8.18 lakh crore. Net revenue during the same period increased by 8.4% to Rs 7.11 lakh crore.
State-wise performance
Several large states reported healthy growth in GST revenues. Bihar posted a 16% increase in July collections, while Madhya Pradesh and Andhra Pradesh saw growth of 18% and 14% respectively. Maharashtra, the highest contributor, reported a 6% increase, while Karnataka and Tamil Nadu saw 7–8% growth.
On the other hand, some states including Manipur (-36%), Mizoram (-21%), and Jharkhand (-3%) recorded a decline in GST collections.