State-wise GST Collections for July 2025 Reflect Strong Economic Momentum

India’s Goods and Services Tax (GST) collections in July 2025 demonstrated continued economic growth and improved compliance. The country recorded gross GST revenue of ₹1.95 lakh crore, marking a 7.5% increase compared to July 2024. This includes collections from domestic transactions and import-related taxes. After accounting for refunds, the net revenue for the month stood at approximately ₹1.68 lakh crore, registering a modest 1.7% year-on-year growth.

The rise in GST receipts reflects not only robust consumption patterns but also better tax administration, digital infrastructure, and stricter enforcement mechanisms.

Top Performing States

Maharashtra

Once again leading the nation, Maharashtra collected ₹30,590 crore, affirming its position as India’s top GST-contributing state. The presence of large financial institutions, a vibrant industrial base, and major urban centers like Mumbai and Pune makes Maharashtra a consistent revenue generator.

Karnataka

Karnataka came in second with a collection of ₹13,967 crore. Its strong information technology, manufacturing, and services sectors are key contributors. Bengaluru’s booming economy and the rise of startups and digital enterprises further fuel the state’s GST performance.

Gujarat

Gujarat, a manufacturing and export hub, recorded ₹11,358 crore in July. While the growth rate was moderate at around 3%, the state remains a top contributor due to its ports, petrochemical units, and well-developed industrial zones.

Tamil Nadu

With ₹11,296 crore in GST collection, Tamil Nadu stood close to Gujarat. The state benefits from a wide industrial base covering textiles, automobile manufacturing, electronics, and consumer goods, which contribute significantly to GST revenues.

Haryana

Haryana posted ₹10,149 crore, making it one of the top five states in terms of tax revenue. The presence of key industrial clusters and proximity to Delhi boost its revenue generation.

Fast-Growing and Emerging States

While the top-performing states contribute the bulk of GST collections, several smaller and eastern states showed impressive growth rates, albeit from a smaller base:

  • Bihar recorded 16% growth, signaling better compliance and rising consumption.
  • West Bengal generated ₹5,895 crore, showing a 12% year-on-year increase, supported by steady trade and economic activities.
  • Northeastern states including Tripura (+41%), Meghalaya (+26%), Sikkim (+23%), and Nagaland (+22%) reported the highest percentage growth. These states are showing improved tax coverage and administrative efficiency.

States like Madhya Pradesh (+18%) also stood out, suggesting better collection mechanisms and expanding tax bases.

On the other hand, some regions, such as Jharkhand, Mizoram, Manipur, Chandigarh, and Jammu & Kashmir, experienced either a drop or stagnation in collections, indicating possible challenges in tax recovery or economic activity.

Sectoral and Policy Drivers

Several factors have contributed to the sustained rise in GST collections:

  • Improved compliance through digital tools like e-invoicing and e-way bills has reduced tax evasion.
  • The expansion of tax-paying businesses and better tracking of supply chains have helped widen the tax base.
  • Imports and increasing trade volume have led to higher Integrated GST (IGST) collections.
  • Automation in refunds and filing processes has increased efficiency and transparency.

The government’s focus on data analytics, use of AI in tax auditing, and regular GST Council meetings to streamline procedures have also played a key role in boosting state revenues.

Full-Year Outlook

With July’s collections continuing a streak of high monthly revenues above ₹1.9 lakh crore, the trend suggests a stable fiscal environment. For the fiscal year 2024–25 so far, cumulative collections are on track to exceed ₹22 lakh crore.

States like Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Haryana are expected to maintain their lead throughout the year, while growth in northeastern and eastern states shows encouraging signs of tax expansion and economic inclusion.

Conclusion

The GST collection figures for July 2025 provide valuable insights into India’s economic health at both national and state levels. While major industrial states remain dominant in terms of absolute revenue, many smaller and developing states are making rapid strides in tax collection growth. This broad-based improvement is a sign of maturing tax infrastructure, better compliance, and expanding economic activity across the country.

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