In July 2025, the government received a net revenue of ₹1.68 lakh crore from Goods and Services Tax (GST). This is only 1.7 percent higher compared to the previous year. However, the gross collection, i.e., total GST recovery, increased by 7.5 percent to reach approximately ₹1.96 lakh crore. But the massive increase in refunds has impacted the net revenue.
Net Collection Slowed Down by Surge in Refunds
In July, the government issued approximately ₹17,000 crore as GST refunds, which is more than double the ₹8,000 crore issued in July last year. Due to this, a significant increase in net GST collection was not observed. This GST collection figure includes transactions from the month of June.
6.7 Percent Higher Collection from Domestic Business
The government received 6.7 percent more revenue in gross terms from domestic transactions, i.e., trade within the country. But since the volume of refunds increased, there was no significant difference in the net collection. This increase from domestic business certainly gives good indications, but the actual revenue has not been as encouraging due to the pressure of refunds.
Slowest Growth Since February
This is the slowest increase in net GST collection since February. In June, the net collection was ₹1.59 lakh crore, which was 3.3 percent higher than the previous year. In May, this figure was ₹1.73 lakh crore, and in April, it was ₹2.09 lakh crore.
Exporters Received More Refunds
The government has increased GST refunds to exporters by 20 percent. Overall, exporters received slightly more than ₹10,000 crore in refunds. As a result, net GST revenue from imports increased by 7.5 percent to ₹42,548 crore. This indicates that there is a positive momentum in revenue receipts from international trade.
8.4 Percent Increase in the First Four Months of Fiscal Year 2025-26
In the first four months of the current fiscal year, i.e., 2025-26, net receipts from GST have increased by 8.4 percent to reach ₹7.11 lakh crore. If both domestic and import transactions are considered, the revenue received from domestic business increased by 6.1 percent to ₹5.6 lakh crore. At the same time, GST revenue from imports recorded an increase of 18.1 percent and reached ₹1.51 lakh crore.
What was the Total Collection and Refund in Four Months
Since the beginning of the fiscal year, i.e., between April and July, the gross GST collection has been ₹8.18 lakh crore. The total refund during this period has been close to ₹1.07 lakh crore. This makes it clear that the refund process in the GST system has become faster than before, and businesses are being paid more quickly.
What Indications are these Figures Giving for the Economy
A mixed picture of stability and growth is being seen in GST collection. While the gross collection figures give positive indications, the increasing volume of refunds reflects the government's tax policy's flexibility and transparency. But this has slightly slowed down the pace of net revenue.
Why was Net Revenue Lower in July
The net collection of GST in July was 0.2 percent lower compared to the previous year. The biggest reason behind this was the heavy refunds. However, government officials say that this refund is part of the regular process, and long-pending claims have been settled.
Government's Eye on Future Collection
The Ministry of Finance is now keeping an eye on the GST collection for August and September. Trade increases during the festival season, and GST revenue is also expected to increase during this period. If the trend of previous years is observed, a b increase in tax collection is seen during the festive season.
