India’s gross goods and services tax (GST) collections rose 14.8 per cent year-on-year to nearly Rs 2 trillion in August, according to data released by the Ministry of Finance on Tuesday. Despite the annual increase, collections were lower than the Rs 2.11 trillion recorded in July.
The growth in GST revenue from imports remained stronger than that from domestic sources during August. Gross domestic GST revenue increased 9 per cent year-on-year to Rs 1.37 trillion.
Meanwhile, GST revenue collected from imports jumped 29 per cent to Rs 62,604 crore.
The stronger growth in import-related collections suggests that some segments continue to rely on overseas sourcing.
“The rise in import-related GST points to continuing dependence on external sourcing in certain segments, reinforcing the need for a calibrated policy push towards deeper localisation and import substitution in these sectors,” Saurabh Agarwal, tax partner at EY India, told Business Standard.
Net GST collections rise 8.3 per cent
After accounting for refunds, net GST collections stood at Rs 1.68 trillion in August, marking an 8.3 per cent increase from the same month last year. However, net collections declined by a little over 7 per cent compared with July.
GST refunds increased sharply during the month. Refunds rose 68 per cent year-on-year to Rs 31,795 crore.
Domestic refunds climbed nearly 73 per cent to Rs 18,490 crore, while refunds related to GST paid on imports rose nearly 62 per cent to Rs 13,305 crore.
FY27 collections cross Rs 10 trillion
For the April-August period of 2026-27, gross GST collections increased 11 per cent year-on-year to Rs 10.43 trillion. Net GST collections during the same period rose 9 per cent to Rs 8.89 trillion.
With the festive season approaching, tax revenues could see stronger activity in the coming months.
“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.