GST Revenue Growth Slows in July 2025
After a moderate performance in June, India’s Goods and Services Tax (GST) revenue growth continued to slow in July 2025. Net collections rose only 1.7% year-on-year, amounting to Rs 1.69 lakh crore. This subdued performance was largely attributed 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, reflecting a 7.5% increase 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 the Rs 1,65,800 crore collected in July 2024.
Domestic net revenue remained flat, experiencing a slight decline of 0.2% to Rs 1.26 lakh crore. This indicates a possible slowdown in domestic consumption or lower tax compliance among taxpayers. Conversely, net revenue from imports saw a 7.5% rise to Rs 42,548 crore, driven by a 9.7% jump in gross Integrated Goods and Services Tax (IGST) and cess collections on imported goods.
Refunds continued to exert pressure on net revenue, with total GST refunds in July surging by 66.8% to Rs 27,147 crore compared to Rs 16,275 crore a year earlier. Refunds related to domestic transactions more than doubled, reaching ₹16,983 crore, while export-related refunds also rose by 20% year-on-year.
In terms of revenue components, IGST accounted for the largest share at Rs 1.03 lakh crore, followed by State Goods and Services Tax (SGST) at Rs 44,059 crore and Central Goods and Services Tax (CGST) at ₹35,470 crore. Additionally, the compensation cess contributed Rs 12,670 crore.
Cumulative Performance
On a cumulative basis, gross GST collections for the April–July 2025 period rose by 10.7% year-on-year to Rs 8.18 lakh crore. Net revenue during this timeframe increased by 8.4%, reaching Rs 7.11 lakh crore.
State-wise Performance
Several large states reported healthy growth in GST revenues. Bihar posted a notable 16% increase in July collections, while Madhya Pradesh and Andhra Pradesh experienced growth of 18% and 14%, respectively. Maharashtra, the highest contributor, reported a 6% increase, while Karnataka and Tamil Nadu saw growth between 7% and 8%.
However, some states recorded a decline in GST collections, including Manipur (-36%), Mizoram (-21%), and Jharkhand (-3%).
The performance of GST revenues continues to reflect the complexities of the Indian economy, highlighting both growth and areas needing attention in terms of compliance and consumption.
👇https://tutorial.gst.gov.in/downloads/news/approved_monthly_gst_data_for_publishing_july_2025.pdf
