GST Collection Hits ₹1.95 Lakh Crore in July — Marks 7.5% Growth as Economy Shows Strength

India collected Rs 1.95 lakh crore in Goods and Services Tax (GST) during July, which is more than a 7.5 per cent rise compared to Rs 1.82 lakh crore in July last year, according to official data released on Friday. The collections under Central GST (CGST), State GST (SGST), and Integrated GST (IGST) all increased compared to last year, but the revenue from cess slightly dropped.

Collections from April to July Show Strong Growth

In the first four months of the financial year 2025-26, between April and July, the total GST collection reached ₹8.18 lakh crore. This is a 10.7 percent increase from Rs 7.38 lakh crore during the same period in the last financial year. During this period, collections from all categories—CGST, SGST, IGST, and cess—went up. In the full financial year 2024–25, the government collected Rs 22.08 lakh crore through GST, which is 9.4 percent more than the total collected in the previous year. The monthly average collection stood at ₹1.84 lakh crore, the highest since the GST system began in 2017.

Rising Revenue Reflects Stronger Economy

GST revenue has been rising consistently in recent years. It went from Rs 11.37 lakh crore in 2020-21 to Rs 20.18 lakh crore in 2023-24. This steady growth reflects stronger economic activity and better tax compliance. The current numbers show that India’s economy is moving in a positive direction, supported by good domestic demand and solid import numbers. These figures are encouraging for the country’s financial health and recovery, even as the world faces economic challenges.

GST System Evolution and Governance

In India, GST was implemented on July 1, 2017. To ensure that states did not lose out on revenue due to the new tax system, the central government promised to compensate them for five years, as per the GST (Compensation to States) Act, 2017. The GST Council, which guides the functioning of GST in India, has played a major role in shaping its policies. It is led by the Union Finance Minister and includes finance ministers from all states and other important officials. Since it was set up in 2016, the Council has met 55 times and taken several steps to make GST easier to follow and more friendly for businesses.