India recorded a gross GST collection of Rs 1.96 lakh crore in July 2025, marking a 7.5 percent rise compared to the same month last year. This continues the trend of robust tax receipts, aided by steady domestic consumption and a crackdown on tax evasion.
CGST, SGST and IGST Breakdown
Out of the total revenue, Central GST stood at Rs 34,827 crore, while State GST accounted for Rs 43,621 crore. The Integrated GST contribution was Rs 1.02 lakh crore, which included Rs 36,611 crore from imports. Additionally, cess collections came in at Rs 15,469 crore, of which Rs 1,246 crore came from imports.
The Finance Ministry stated that after regular settlements, the Centre received Rs 43,697 crore and states got Rs 44,515 crore. The total revenue for July after these adjustments stood at Rs 88,212 crore for the Centre and Rs 88,137 crore for the states.
Collections Consistently Above 1.9 Lakh Crore
This is the fifth time that monthly collections have crossed the Rs 1.9 lakh crore mark and the fourth time in the current financial year. While the growth rate has slightly moderated compared to the double-digit surge seen in early 2024, the numbers reflect a stable consumption pattern and improved compliance.
Sectoral and Economic Signals
Economists see this steady rise in GST collections as a sign of broad-based recovery across sectors, especially in manufacturing, services, and trade. The July numbers align with expectations of stronger Q2 growth and give the Centre fiscal room to manage subsidies and infrastructure spending without slipping on deficit targets. Although IGST from imports showed marginal year-on-year moderation, domestic transaction revenues held strong. Analysts note that enforcement against fake invoicing and better data sharing between tax authorities have improved tax administration efficiency.
As the festive season approaches, GST revenues are expected to remain high, provided consumption demand holds. Any policy tweaks or rate revisions in the upcoming GST Council meetings will likely focus on simplification and widening the base rather than increasing rates. This consistent performance positions GST as a reliable source for funding government plans without over-relying on borrowings.
