India’s Goods and Services Tax (GST) collections rose to Rs 1.96 lakh crore in July, up 7.5 per cent from the same month of the previous year, according to government data released on Friday.
The increase was driven by higher revenue from both domestic transactions and imports, reflecting steady economic activity, though the growth pace was slower than in recent months.
Between April and July this year, gross GST revenue stood at Rs 8.18 lakh crore -- marking a 10.7 per cent jump from Rs 7.39 lakh crore in the same period of 2024.
In July, the total gross GST collection comprised Rs 35,470 crore from Central GST, Rs 44,059 crore from State GST, Rs 1,03,536 crore from Integrated GST (including Rs 51,626 crore from imports), and Rs 12,670 crore from cess (including Rs 1,086 crore from imports).
While July marked the seventh consecutive month with collections above Rs 1.8 lakh crore, the figure was lower than the Rs 2.1 lakh crore average seen in the first quarter of FY26.
GST receipts had hit a record Rs 2.37 lakh crore in April before easing to Rs 2.01 lakh crore in May.
After adjusting for refunds, the net GST revenue for July stood at Rs 1,68,588 crore, just 1.7 per cent higher than Rs 1,65,800 crore a year ago.
The modest growth was due to a sharp 66.8 per cent surge in refunds, which touched Rs 27,147 crore for the month compared to Rs 16,275 crore in July 2024.
For the April–July period, net GST revenue rose 8.4 per cent to Rs 7.11 lakh crore from Rs 6.56 lakh crore the previous year.
State-wise performance was mixed. Smaller northeastern states posted strong gains, with Tripura leading at 41 per cent growth, followed by Meghalaya (26 per cent), Sikkim (23 per cent), and Nagaland (22 per cent).
Among larger states, Madhya Pradesh reported an 18 per cent increase, Bihar 16 per cent, Andhra Pradesh 14 per cent, and Punjab and Haryana 12 per cent each.
Maharashtra, the highest GST contributor, collected Rs 30,590 crore in July, up 6 per cent from the previous year.
Karnataka and Tamil Nadu grew by 7 per cent and 8 per cent respectively, while Gujarat posted a muted 3 per cent rise.
Some regions, however, saw revenue fall. Manipur’s GST collections dropped 36 per cent, Mizoram’s fell 21 per cent, and Jammu and Kashmir and Chandigarh recorded a 5 per cent decline each.
Delhi and Uttar Pradesh registered modest growth of 2 per cent and 7 per cent, respectively.
Manufacturing activity in July remained resilient despite global challenges, with output rising to a 16-month high of 59.1, supporting the overall economic momentum.
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