GST Net Collection Growth In July Moderates To 1.7% On Back Of High Refunds
Between April and July, GST revenues totalled Rs 8.18 lakh crore—up 10.7% from Rs 7.39 lakh crore during the same period last year.
India’s gross GST collections grew 7.5% to Rs 1.96 lakh crore in July 2025 compared to Rs 1.82 lakh crore reported in July 2024, Finance Ministry data showed. The net collection, however, moderated to Rs 1.68 lakh crore, growing merely 1.7% on back of high refunds issued during the month.
The July month saw 66.8% jump in total refunds, which surged to Rs 27,147 crore, compared to Rs 16,275 crore during the same month last year.
Between April and July, GST revenues totalled Rs 8.18 lakh crore—up 10.7% from Rs 7.39 lakh crore during the same period last year.
In July, the gross GST haul included Rs 35,470 crore from CGST and Rs 44,059 crore from SGST, underscoring a consistent tax inflow across the federal and state levels.
Abhishek Jain, Indirect Tax Head & Partner, KPMG says: ”It’s heartening to see GST refunds picking up, not just for exports but also for domestic supplies. This reflects maturity of the GST regime. Higher refunds on domestic supplies could be from excess tax payments, inverted duty structures, and other adjustments. The increased refunds should aid cash flows for businesses.”
Experts say that the latest GST collections are a positive sign for the Indian economy. Despite some global pressures and temporary dips, the overall trend shows a stable consumption pattern.
“The government's timely refund process is also a great help to businesses, ensuring they have the working capital they need. Looking at the year-to-date figures, the robust GST collections confirm that the Indian economy is on a consistent growth trajectory, which is a testament to its resilience. While we may see some seasonal moderation in August, the overall trend is very positive and a clear indicator of India's robust economic growth,” said Saurabh Agarwal, Tax Partner, EY.
