GST collections rose to Rs 1.96 lakh crore in July, recording a faster 7.5 percent increase from the year-ago period, according to data released by the government on August 1.
GST collection growth had dipped to 6.1 percent in the previous month, recording the lowest growth since the pandemic, as gross collections had eased to Rs 1.85 lakh crore.
”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,” said Abhishek Jain, Indirect Tax Head & Partner, KPMG.
Although collections remained above Rs 1.8 lakh crore for a seventh consecutive month, they were lower than the Rs 2.1 lakh crore average achieved in the first quarter of FY26.
In April, gross GST collections had hit an all-time high of Rs 2.37 lakh crore but had slowed to Rs 2.01 lakh crore in May.
Net domestic revenue shrunk 0.2 percent in July, as net overall collections recorded just a 1.7 percent rise to Rs 1.69 lakh crore.
Gross domestic revenue growth at 6.7 percent was lower than 9.7 percent growth recorded in import revenues.
Manufacturing activity remained resilient in the face of global turmoil in July, with activity rising to a 16-month high of 59.1.
But Trump's higher levies on India are likely to make an impact on growth. Economists on August 1 noted that growth will have a 0.3 percentage point dip owing to Trump's tariffs. India's tariffs at 25 percent are higher than most Asian economies and one of the highest in the world.
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