Gross GST collections rise 14.8% to nearly ₹2 lakh crore in August; import revenues lead growth

GST Collections Near ₹2 Lakh Crore Mark

India's gross Goods and Services Tax (GST) collections increased 14.8% year-on-year to nearly ₹2 lakh crore in August, according to data released by the Ministry of Finance on September 1. The latest collections were lower than the ₹2.11 lakh crore recorded in July but remained among the strongest monthly GST receipts on record.

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After accounting for refunds, net GST collections rose 8.3% year-on-year to ₹1.68 lakh crore. On a sequential basis, net collections were down by a little over 7% compared with the previous month.

Import GST Revenue Outpaces Domestic Growth

Revenue from imports continued to drive overall GST growth during the month.

Gross domestic GST revenue rose 9% year-on-year to ₹1.37 lakh crore in August, while GST collections from imports surged 29% to ₹62,604 crore, according to Finance Ministry data reported by Business Standard.

The sharp increase in import-related revenues meant that growth from imported goods significantly outpaced collections generated from domestic transactions during the month.

Refunds See Sharp Increase

GST refunds rose sharply in August, tempering the growth seen in net collections.

Total refunds increased 68% year-on-year to ₹31,795 crore. Domestic refunds climbed nearly 73% to ₹18,490 crore, while refunds related to imported goods rose nearly 62% to ₹13,305 crore, according to the data.

The higher refund outgo contributed to the gap between growth in gross collections and net collections during the month.

FY27 Collections Remain Strong

The government's GST revenues continued to show steady growth in the current financial year.

During April-August FY27, gross GST collections stood at ₹10.43 lakh crore, up 11% from the same period last year. Net GST collections during the five-month period increased 9% year-on-year to ₹8.89 lakh crore, according to Finance Ministry data cited by Business Standard.

Outlook Ahead Of Festive Season

The latest tax collections come ahead of the festive season, a period that typically sees higher consumer spending and stronger economic activity.

According to reports, rising consumption in the coming months could provide additional support to GST revenues as festival-related demand picks up across sectors.