New Delhi, Sep 1 (PTI) Gross GST collections rose 14.8 per cent year-on-year to about Rs 2 lakh crore in August, driven by domestic transactions as well as imports.
The August GST collection figures, coming a day after the official data showed a 7.8 per cent growth in GDP during the June quarter of FY27, show that economic activity and consumption continued to be strong in the second quarter as well despite the tariff headwinds and the West Asia crisis.
Revenue from domestic transactions rose 9.3 per cent to over Rs 1.37 lakh crore, while that from imports jumped 29 per cent to Rs 62,604 crore. With this, the gross Goods and Services Tax (GST) revenue during August was Rs 1,99,853 crore.
The gross Central GST collection was Rs 38,413 crore, State GST at Rs 46,316 crore and Integrated GST at over Rs 1.15 lakh crore during August.
Refunds jumped 68 per cent to Rs 31,795 crore during August.
Net GST collection during the month was at Rs 1.68 lakh crore, an 8.3 per cent year-on-year growth.
EY India Tax Partner Saurabh Agarwal said GST collections underscore the underlying resilience of the Indian economy, reflecting steady consumption and improving compliance. Equally encouraging is the pickup in collections from states such as Arunachal Pradesh, Nagaland, Mizoram, Assam, Chhattisgarh, Ladakh, and Andaman & Nicobar — a trend that reflects the broadening of economic activity beyond traditional industrial hubs and points to more inclusive, geographically balanced growth.
“Looking ahead, with the festive season round the corner, revenue collections over the next couple of months are likely to trend higher, supported by increased consumer spending,” Agarwal said.
Nangia Global, Executive Director – Indirect Tax, Sivakumar Ramjee said August 2026 also provides an early view of the impact of GST 2.0, with collections remaining robust despite the rate rationalisation introduced in September 2025.
“However, the fact that growth is being supported by higher import collections, alongside a sharp increase in refunds, makes it important to see whether the rate rationalisation is translating into stronger domestic consumption and volumes and, consequently, more broad-based revenue growth,” Ramjee said.
The gross GST mop-up during April-August grew 11 per cent to Rs 10.43 lakh crore, reflecting consistency in collections over the past year.
Alongside sustained GDP growth, GST collection points to a more broad-based and durable revenue trajectory, rather than growth being concentrated in any single month or segment, said Deloitte India, Partner and Indirect Tax Leader, Mahesh Jaising.
Jaising said the upcoming GST Council meeting provides an opportunity to build on this momentum and continue focus on the next generation of GST reforms.
“In the backdrop of sustained growth of GST revenues, post rate rationalisation a year ago, industry is hopeful of structural reform decisions relating to working capital challenges (including inverted duty structure), rationalising ITC restrictions (that were carried forward from the erstwhile central tax framework), further export liberalisation and removal of interpretation ambiguities, which cut across sectors such as export, pharma, real estate, ecommerce, digital supplies, etc,” Jaising added.
The next meeting of the GST Council is scheduled for September 12.
AKM Global, Lead-Indirect Tax, Ikesh Nagpal said with monthly collections now consistently hovering around the Rs 2 lakh crore mark following the significant rate rationalisation undertaken last year, the focus can increasingly shift from revenue mobilisation to making the GST framework simpler and easier to comply with. PTI JD JD VHI VHI
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.