Gross GST collections rise 15.4% to ₹2.11 trillion in July

India’s gross goods and services tax (GST) collections rose 15.4% year-on-year to ₹2.11 trillion in July, marking one of the strongest monthly performances this fiscal year, driven by robust domestic transactions and a sharp jump in tax collections from imports, according to data released by the finance ministry on Friday.

After adjusting for refunds, net GST collections rose 15.8% year-on-year to ₹1.81 trillion.

Domestic GST collections increased 10.1% to ₹1.44 trillion in July, while GST revenue from imports surged 28.8% to ₹66,511 crore, indicating healthy domestic demand alongside resilient import activity.

Total refunds issued during the month increased 13.1% to ₹29,968 crore, while net domestic GST revenue grew 10.5% to ₹1.27 trillion. Net GST revenue from imports climbed 30.3% to ₹54,223 crore.

During the first four months of FY27, gross GST collections rose 10.1% year-on-year to ₹8.42 trillion, while net GST revenue increased 9.2% to ₹7.21 trillion. Domestic GST collections during April-July grew 4.5% to ₹5.99 trillion, whereas GST revenue from imports rose 26.9% to ₹2.43 trillion.

Among major states, Haryana recorded the fastest growth in GST collections, with revenue rising 25% year-on-year to ₹11,892 crore in July. Gujarat followed with a 19% increase to ₹12,923 crore, while Telangana also posted a 19% rise to ₹5,819 crore.

India’s GST collections continue to reflect the resilience of our economy, said Vivek Jalan, partner, Tax Connect Advisory Services LLP, a PAN India multi-disciplinary Tax Consulting Firm. “Domestic revenues alone grew by 10.1% on gross terms and 10.5% on net terms, underscoring the strength of internal consumption and compliance. Out of 36 States and Union Territories, 28 recorded positive revenue growth, with several large economies such as Maharashtra, Gujarat, Karnataka, and Telangana posting double-digit increases. This broad-based expansion highlights the depth of India’s tax base and the vibrancy of its markets.”

“The timing of statutory milestones may have also contributed to buoyancy. The requirement of pre deposit for GSTAT filings, with the due date of 31 July 2026, ensured timely inflows of pre-deposit and strengthened revenue discipline.”

Additionally, the approaching time barring deadlines – 30 September for Section 73 notices relating to FY22-23, and 31 August 2026 for Section 74 notices relating to FY20- 21 have prompted proactive compliance and accelerated part of alleged demand realization. “Together, these factors reinforce the government’s commitment to fiscal stability and a transparent, technology driven GST regime that supports India’s growth story,” Jalan added.

States' collections

Punjab and Kerala registered 16% growth each, and Uttar Pradesh, India's most populous state, reported a 15% increase to ₹9,651 crore. Maharashtra, the country's largest GST-contributing state, saw collections rise 13% to ₹32,210 crore, while Karnataka recorded a 12% increase to ₹13,854 crore. Delhi's GST collections grew 8% to ₹6,460 crore.

Among the states that reported weaker collections, Himachal Pradesh registered the steepest decline of 22%, followed by Uttarakhand (-18%), Puducherry (-17%), Madhya Pradesh (-10%), Mizoram (-7%), Andhra Pradesh (-5%) and Tamil Nadu (-1%).

The July numbers indicate continued strength in economic activity at the start of the second quarter of FY27, with healthy growth in domestic tax collections and a robust rise in import-related GST helping lift overall indirect tax revenues.