GST – India Records Strongest Monthly Tax Collection Growth in Fourteen Months
GST –India witnessed a sharp rise in Goods and Services Tax (GST) collections in July, reflecting healthy economic activity and stronger consumer spending across the country. According to official data released by the government on Saturday, gross GST revenue reached Rs 2.11 lakh crore during the month, marking a 15.4 per cent increase compared to the same period last year. This represents the fastest annual growth in monthly GST collections in the past 14 months.
Monthly Collections Cross Rs 2 Lakh Crore Again
The latest figures also mark the second occasion in the current financial year (FY27) that monthly GST collections have crossed the Rs 2 lakh crore milestone. The increase has largely been supported by rising domestic demand, improved business transactions, and higher tax receipts from imported goods.
Domestic GST collections alone stood at Rs 1.45 lakh crore in July, registering a year-on-year increase of 10.1 per cent from Rs 1.31 lakh crore recorded in July 2025. The data indicates continued stability in economic activity within the country despite global uncertainties.
Import Revenue Sees Significant Jump
One of the major contributors to the overall growth was GST collected on imports. Revenue from imported goods climbed 28.8 per cent to Rs 66,511 crore during July, providing a substantial boost to total tax collections.
The rise in import-related GST suggests stronger international trade activity and sustained demand for imported products, complementing domestic tax revenue growth during the month.
Refunds Increase Alongside Higher Revenue
Government data also showed that GST refunds increased during the month. Total refunds amounted to Rs 29,968 crore in July, reflecting a 13.1 per cent increase compared to the same month last year.
After adjusting these refunds, net GST collections reached Rs 1.81 lakh crore, representing a 15.8 per cent annual increase. Net domestic GST revenue rose 10.5 per cent to Rs 1.27 lakh crore, while net GST collected through customs expanded by an impressive 30.3 per cent to Rs 54,223 crore.
Strong Performance Continues in FY27
The cumulative GST collections during the first four months of FY27 have also remained on a positive trajectory. Between April and July, gross GST revenue stood at Rs 8.43 lakh crore, compared with Rs 7.66 lakh crore collected during the corresponding period of the previous financial year. This reflects an overall growth of 10.1 per cent.
The July performance follows another encouraging month in June, when GST collections increased 13.9 per cent year-on-year to Rs 1.94 lakh crore, supported by higher tax receipts from imports.
SBI Research Projects Positive Outlook
A recent report by SBI Research has projected a favourable outlook for state finances in the current financial year. According to the report, after considering GST collections along with states’ share in the basic excise duty, states are expected to gain approximately Rs 1.43 lakh crore more in FY27 compared with FY26.
The report also expects GST revenue growth to remain steady in the coming months. It estimates annual collection growth in the range of 8 to 9 per cent. While some moderation in collections may occur due to ongoing GST rate rationalisation, the report notes that such an outcome is broadly in line with expectations and does not alter the overall positive revenue trend.