Gross GST collections in India rose to ₹1,95,735 crore in July 2025, a 7.5% increase from the same period last year. This growth signals continued economic activity, though the pace has slowed.
Thank you for reading this post, don't forget to subscribe!On a year-to-date basis (April–July), gross GST revenue surged 10.7% to ₹8.18 lakh crore.
Key Figures for July 2025:
- Central GST (CGST): ₹35,470 crore
- State GST (SGST): ₹44,059 crore
- Integrated GST (IGST): ₹1,03,536 crore (includes collections on imports)
- Compensation Cess: ₹12,670 crore (includes collections on imports)
Net Revenue Growth Stalls Due to High Refunds
After accounting for refunds, net GST revenue for July was ₹1,68,588 crore, a modest 1.7% increase. This subdued growth is mainly due to a 66.8% jump in total refunds, which reached ₹27,147 crore.
Experts see the increase in refunds as a sign of a maturing GST system and a help to businesses’ cash flow, but they also express concern over the slow growth in net collections.
Mixed Performance Across States
While some states showed strong growth, others struggled.
Top Performers (by growth):
- Northeast: Tripura (41%), Meghalaya (26%), Sikkim (23%)
- Large States: Madhya Pradesh (18%), Bihar (16%), Andhra Pradesh (14%)
States with Declines:
- Manipur (-36%)
- Mizoram (-21%)
- Jammu & Kashmir and Chandigarh (-5% each)
Major Economic Hubs:
- Maharashtra: 6% growth
- Karnataka: 7% growth
- Tamil Nadu: 8% growth
- Gujarat: 3% growth
- Delhi: 2% growth
Expert Analysis and Outlook
The data points to a stable economic trend, but some experts are raising red flags. A few key points from analysts include:
- Positive Signs: The strong year-to-date figures and robust collections from smaller states indicate balanced economic growth and resilience. The rise in refunds is also seen as a positive for businesses.
- Structural Concerns: The slow growth in net collections and low revenue increases in major states like Delhi and Gujarat are a worry. Some analysts suggest that the “inverted duty structure,” where tax on finished goods is lower than on raw materials, is contributing to the high refunds and needs to be addressed.
- Future Outlook: With the upcoming festive season and a projected GDP growth of around 7%, collections are expected to improve. However, the government may need to consider reforms and tax rationalization to sustain long-term growth and address the current inefficiencies.
