- India's gross GST collections rose by 15.4% in July, reaching ₹2.11 lakh crore compared to ₹1.83 lakh crore a year ago, while net collections climbed to ₹1.81 lakh crore from ₹1.56 lakh crore.
- Net domestic GST collections accelerated to 10.5 per cent year-on-year from 2.6 per cent last month, indicating stronger consumption and the economy's absorption of the benefits from the GST rate rationalisation exercise.
- Strong gains were observed across Maharashtra, Gujarat, Karnataka, Haryana, Telangana and Uttar Pradesh, while Bengal's GST collection rose 2 per cent year-on-year to ₹5,564 crore in July.
- Total refunds increased by 13.1 per cent in July, with export refunds processed through ICEGATE recording 22.7 per cent growth.
India's gross Goods and Services Tax (GST) collection rose 15.4% in July to ₹2.11 lakh crore, compared to ₹1.83 lakh crore a year ago.1
Net collections climbed to ₹1.81 lakh crore, up from ₹1.56 lakh crore, reflecting strong economic activity and robust revenue from imports.
The increase in gross GST collections was driven by a 28.8% surge in import GST, consistent with a 26.85% expansion in total imports in June, influenced by rupee depreciation that raised the taxable value of imported goods.
Manoj Mishra from Grant Thornton Bharat noted that the GST figures also reflect broader economic conditions, stating, “GST numbers do not solely reflect an import-price story.”
Meanwhile, net domestic GST collections accelerated to 10.5% year-on-year from just 2.6% the previous month, indicating that the economy is starting to benefit from GST rate rationalization.2
Strong gains were reported across major states, including Maharashtra, Gujarat, Karnataka, Haryana, Telangana, and Uttar Pradesh, confirming broad-based momentum in manufacturing and services.
Additionally, Bengal's GST collection rose 2% year-on-year to ₹5,564 crore in July, with a 9.5% increase over the previous month.34
The taxpayer facilitation drive also led to a 13.1% increase in total refunds processed in July, with export refunds growing by 22.7%.
“Mahesh Jaising of Deloitte India said net domestic GST growth accelerated to 10.5% year-on-year from 2.6% last month, indicating the economy is beginning to fully absorb the benefits of GST rate rationalisation. Strong gains across Maharashtra, Gujarat, Karnataka, Haryana, Telangana and Uttar Pradesh confirmed broad-based momentum, with Bengal's collection up 2% to ₹5,564 crore.”
