<p>New Delhi: Revenue collection from <a href="https://www.deccanherald.com/tags/gst">Goods and Services Tax (GST)</a> rose by 7.5% year-on-year to Rs 1.96 lakh crore in July, data released by the Union Finance Ministry showed on Friday.</p><p>After adjusting for refunds, the net GST revenue stood at Rs 1.69 lakh crore in July, which was just 1.7% when compared with the same month last year. There was a sharp 66.8% surge in GST refunds during the month under review. In July businesses received Rs 27,147 crore in tax refunds.</p><p>According to analysts, refunds surged likely due to faster processing by the government. “This increase in refunds augurs well for businesses as it indicates stability in the online refund processes and quicker refund sanctions,” said MS Mani, Partner, Deloitte India</p><p>“The government's swift processing of domestic refunds shows its commitment to resolving the issue of inverted duty rates,” said Saurabh Agarwal, Tax Partner, EY India.</p><p>Agarwal added “although a complete rate change may still be in the works, these timely refunds offer immediate relief to domestic industries affected by the tax structure.”</p><p>Gross GST collection from domestic businesses increased by 6.7% to Rs 1.43 lakh crore, while tax from imports rose 9.5% to Rs 52,712 crore.</p><p>The July collection included Rs 35,470 crore from Central GST, Rs 44,059 crore from State GST, Rs 1,03,536 crore from Integrated GST (including Rs 51,626 crore from imports), and Rs 12,670 crore from cess (including Rs 1,086 crore from imports).</p>.GST enforcement should be balanced with sensitivity: SBI Research amid Karnataka UPI-GST row.<p>"On an encouraging note, the YoY growth in gross GST revenues improved in July 2025 relative to the previous month. However, large refunds pulled down the performance of net revenues to 1.7%. Interestingly, growth of GST on imports outpaced domestic revenues, with the latter being dampened by tepid cess collections,” said Aditi Nayar, Chief Economist at ICRA.</p><p>Pratik Jain, Partner, Price Waterhouse & Co, said after the tepid growth in net collection the GST council may discuss the possible measures to augment the revenues in the coming months. “With compensation cess going away, the States may also be a bit more concerned about the slowdown in GST collections,” Jain said.</p><p>The growth in state revenues amongst large producing and consuming states has been very low ranging from 2% (Delhi), 3% (Gujarat), 4%( Rajasthan), 6% ( Maharashtra), 7% (Karnataka) and 8% ( Tamil Nadu).</p><p>There are few bright spots in terms of Punjab and Haryana, West Bengal (12%), Andhra Pradesh (14%) and Madhya Pradesh (18%) , said Mani.</p>
<p>New Delhi: Revenue collection from <a href="https://www.deccanherald.com/tags/gst">Goods and Services Tax (GST)</a> rose by 7.5% year-on-year to Rs 1.96 lakh crore in July, data released by the Union Finance Ministry showed on Friday.</p><p>After adjusting for refunds, the net GST revenue stood at Rs 1.69 lakh crore in July, which was just 1.7% when compared with the same month last year. There was a sharp 66.8% surge in GST refunds during the month under review. In July businesses received Rs 27,147 crore in tax refunds.</p><p>According to analysts, refunds surged likely due to faster processing by the government. “This increase in refunds augurs well for businesses as it indicates stability in the online refund processes and quicker refund sanctions,” said MS Mani, Partner, Deloitte India</p><p>“The government's swift processing of domestic refunds shows its commitment to resolving the issue of inverted duty rates,” said Saurabh Agarwal, Tax Partner, EY India.</p><p>Agarwal added “although a complete rate change may still be in the works, these timely refunds offer immediate relief to domestic industries affected by the tax structure.”</p><p>Gross GST collection from domestic businesses increased by 6.7% to Rs 1.43 lakh crore, while tax from imports rose 9.5% to Rs 52,712 crore.</p><p>The July collection included Rs 35,470 crore from Central GST, Rs 44,059 crore from State GST, Rs 1,03,536 crore from Integrated GST (including Rs 51,626 crore from imports), and Rs 12,670 crore from cess (including Rs 1,086 crore from imports).</p>.GST enforcement should be balanced with sensitivity: SBI Research amid Karnataka UPI-GST row.<p>"On an encouraging note, the YoY growth in gross GST revenues improved in July 2025 relative to the previous month. However, large refunds pulled down the performance of net revenues to 1.7%. Interestingly, growth of GST on imports outpaced domestic revenues, with the latter being dampened by tepid cess collections,” said Aditi Nayar, Chief Economist at ICRA.</p><p>Pratik Jain, Partner, Price Waterhouse & Co, said after the tepid growth in net collection the GST council may discuss the possible measures to augment the revenues in the coming months. “With compensation cess going away, the States may also be a bit more concerned about the slowdown in GST collections,” Jain said.</p><p>The growth in state revenues amongst large producing and consuming states has been very low ranging from 2% (Delhi), 3% (Gujarat), 4%( Rajasthan), 6% ( Maharashtra), 7% (Karnataka) and 8% ( Tamil Nadu).</p><p>There are few bright spots in terms of Punjab and Haryana, West Bengal (12%), Andhra Pradesh (14%) and Madhya Pradesh (18%) , said Mani.</p>