GST collections exceeded Rs 2 lakh crore for the third consecutive month in July 2025, totalling Rs 2.08 lakh crore with 14.2% year-on-year growth. Strong economic activity, AI-powered invoice matching improvements, and a broader formal economy drove the result. Domestic transactions accounted for Rs 1.74 lakh crore with imports contributing Rs 34,000 crore to the total.
Finance Minister Sitharaman said consecutive months above Rs 2 lakh crore suggest the threshold has become a floor rather than a ceiling. Full-year FY2026 collections are on track to average Rs 1.95 lakh crore, well above the budget estimate of Rs 1.75 lakh crore. Improved GST buoyancy gives the government greater fiscal space for infrastructure spending and welfare programmes without compromising fiscal consolidation targets.