India's gross Goods and Services Tax (GST) collections rose 15.4 per cent year-on-year to over Rs 2.11 lakh crore in July, driven by higher revenues from both domestic transactions and imports, according to government data released on Friday. The report from the TOI Business Desk said gross GST collections stood at Rs 1.83 lakh crore in July 2025, while the Centre had collected around Rs 1.95 lakh crore in June 2026, making July the second consecutive month in which collections remained above the Rs 2 lakh crore mark.
July collections at a glance
The July collections were led by Integrated GST, which captures inter-state transactions and imports. According to the report, the monthly total comprised:
- Rs 39,835 crore from Central GST (CGST)
- Rs 47,881 crore from State GST (SGST)
- Over Rs 1.23 lakh crore from Integrated GST (IGST)
The composition reflects strong tax inflows from inter-state transactions and imports, the report said.
Refunds and net revenue
The government also maintained a healthy pace of refunds. Total GST refunds rose 13.1 per cent year-on-year to Rs 29,968 crore in July, the report said. After adjusting for refunds, net GST revenue stood at over Rs 1.81 lakh crore, indicating sustained growth in the indirect tax base despite higher refund payouts.
June momentum sets the base
The July figures build on the strong momentum seen in June. According to the report, gross GST collections in June increased 13.9 per cent year-on-year to Rs 1,94,812 crore, compared with Rs 1,71,105 crore in the same month last year. Net GST revenue in June rose 11.2 per cent to Rs 1,62,377 crore.
June's growth was largely driven by a sharp rise in import-related tax collections. The report detailed:
| Metric (June 2026) | Value | Year-on-year change |
|---|---|---|
| Gross GST collections | Rs 1,94,812 crore | +13.9% |
| Net GST revenue | Rs 1,62,377 crore | +11.2% |
| GST revenue from imports | Rs 60,038 crore | +34.6% |
| Domestic GST collections | Rs 1,34,774 crore | +6.5% |
| Refunds | Rs 32,436 crore | +29.1% |
Refunds during June rose 29.1 per cent to Rs 32,436 crore, improving liquidity for businesses while keeping overall tax collections robust, according to the report.
Analyst perspective
Abhishek Jain, Indirect Tax Head & Partner at KPMG, said the July numbers point to healthy momentum while flagging questions about the composition of import-driven growth. In comments carried by the report:
July's GST collections have come in strong, and the momentum looks healthy. Much of the growth this month was driven by imports; though it's worth digging into whether that's finished goods or raw materials, and how much of it simply reflects a weaker rupee rather than higher volumes. Domestic collections have grown steadily too, and with refunds also rising and there being fiscal headroom possibly, this may be a good moment to start thinking about a GST 3.0 - specifically refunds on input services for inverted duty structure companies.
Jain also raised the prospect of a 'GST 3.0' centred on refunds on input services for companies with inverted duty structures.
Implications for corporate tax teams
For CFOs, tax directors and investors tracking Indian consumption, the data provides a clear near-term picture. GST refunds grew 13.1 per cent in July and 29.1 per cent in June, while net revenue after refunds still rose to over Rs 1.81 lakh crore in July and Rs 1.62 lakh crore in June. That combination of higher gross collections and faster refunds indicates improving cash-flow conditions for businesses transacting under GST, based on the figures cited in the report.
For investors, the July print extends a run of double-digit growth in India's indirect tax collections, with import-linked GST revenue expanding 34.6 per cent in June alone, according to the report.
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