India collects 1.96 trillion rupees in goods and services tax in July

By Admin

02 Aug, 2025

New Delhi, August 1:
India’s Goods and Services Tax (GST) collections continue to show strong momentum as the country collected a gross ₹1.96 trillion ($22.40 billion) in July 2025, marking a 7.5% increase compared to the same month last year. This positive trend underscores the sustained economic activity and compliance efforts under the unified tax regime.

The Ministry of Finance announced this update on Friday, stating that the GST collection reflects robust consumption patterns, increased business activity, and improved tax administration. July’s numbers are a crucial indicator of the country's financial health as GST is a major source of revenue for both the central and state governments.

The rise in collections includes contributions from Central GST (CGST), State GST (SGST), Integrated GST (IGST), and cess levied on sin and luxury goods. The continued growth highlights increased formalization in the economy and a broader tax base.

At the current exchange rate of $1 = ₹87.4870, the collected amount equates to approximately $22.40 billion. Analysts suggest that this uptrend in revenue collection may support the government’s fiscal goals, enable better public spending, and pave the way for future tax rationalization.

This performance also aligns with India’s macroeconomic trajectory, driven by resilient manufacturing, trade, and services sectors. As the economy continues to recover and expand, GST collections are expected to maintain their upward trend in the coming quarters.

Key Highlights:

• Gross GST collection in July 2025: ₹1.96 trillion
  
  

• Year-on-year increase: 7.5%
  
  

• Equivalent in USD: $22.40 billion
  
  

• Exchange rate: $1 = ₹87.4870
  
  

With consistent reforms and improved compliance measures, India’s GST regime continues to evolve as a cornerstone of the nation's indirect tax structure bringing transparency, uniformity, and efficiency to the taxation system.