Bengal Records 12% GST Growth in July 2025

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West Bengal posted a 12% year-on-year increase in Goods and Services Tax (GST) collections for July 2025, Chief Minister Mamata Banerjee announced on Tuesday. According to provisional data from the Government of India, the state collected ₹5,895 crore in July, compared to ₹5,257 crore in the same month last year.

In a post on X, Banerjee described the performance as a “robust” indicator of economic activity, noting that cumulative GST revenue growth for the current fiscal year, up to July, stands at 7.7%. She said the figures point to “steady improvement in business and consumption in Bengal” and are a “sign of good economic health.”

For the 2025-26 fiscal year, the state has set an ambitious target of ₹49,771 crore for State GST (SGST) collections. In 2024-25, SGST revenue reached ₹45,872 crore, which remains the largest single source of West Bengal’s own tax revenue. This marks a continued rise from the ₹40,899 crore recorded in 2022-23, reflecting consistent post-pandemic growth.

The current SGST target is nearly 25% higher than the 2022-23 figure, underscoring the government’s confidence in sustaining revenue momentum. West Bengal’s overall own tax revenue for 2025-26 has been projected at ₹1,12,543 crore.

Alongside the GST performance update, the Chief Minister also drew attention to improvements in the state’s fiscal indicators. She highlighted a decline in the debt-to-Gross State Domestic Product (GSDP) ratio, which has fallen from 40.6% in 2010-11 to 36.8% in 2024-25. Banerjee also noted that the revenue deficit as a percentage of GSDP has come down, indicating better fiscal balance.

Economists note that GST performance is closely linked to broader economic activity, including manufacturing output, trade, and consumer spending. A sustained increase in collections may signal stronger demand within the state’s economy, as well as improved compliance under the GST framework.

Officials in the state finance department have expressed confidence that the SGST target for the year is achievable, citing ongoing efforts to improve tax administration and expand the base of registered taxpayers. Initiatives to curb tax evasion and streamline compliance processes are expected to further support revenue growth.

While West Bengal’s GST growth mirrors a broader upward trend seen in several Indian states, the rate of expansion in July places it among the stronger performers in the country. Analysts suggest that maintaining this pace will depend on continued stability in trade activity, infrastructure development, and investment inflows.With the state government emphasizing fiscal discipline alongside revenue growth, the latest figures are expected to bolster West Bengal’s financial planning for infrastructure, social welfare, and development projects in the year ahead.