GST Collections Rise 13.9% In June As Import Tax Revenues Drive Growth

India’s gross Goods and Services Tax (GST) collections increased 13.9% year-on-year to ₹1.95 lakh crore in June, driven primarily by higher tax receipts from imports, according to government data released on Wednesday. After adjusting for refunds, net GST collections stood at ₹1.62 lakh crore, registering an 11.2% increase over the same month last year.

New statistics show that revenues through taxation from imports continued to play a significant role in supporting total GST collection, whereas growth in revenues through domestic collections was moderate.

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Revenues From Import Exceed Growth In Revenues From Domestic Activities

Gross GST collection through domestic activities grew by 6.5% to ₹1.35 lakh crore for the month of June. This is in contrast with GST collection from imports, which grew 34.6% to ₹60,038 crore.

Even after making allowances for refunds, the disparity was quite marked. Net GST collection through domestic activities grew only by 2.6% to ₹1.17 lakh crore, showing slow growth in domestic economic activity. However,  GST collection from imports grew by 42.2% to ₹45,370 crore.

The recent figures show that GST collections linked to custom duty revenues played an important part in total revenue collection.

Refunds Continue To Rise

GST refunds also recorded a sharp increase in June. Total refunds issued during the month rose 29.1% year-on-year to ₹32,436 crore. Domestic refunds increased 42.9% to ₹17,767 crore, while refunds related to imported goods rose 15.6% to ₹14,669 crore.

The elevated refunds kept the increase in net GST collection at bay in spite of the strong performance in terms of GST revenue growth.

Gross GST Collection Grows Steadily During the First Quarter of FY27

In the first quarter (April-June) of the FY27 financial year, the total gross GST collection was recorded at ₹6.32 lakh crore with an 8.4% growth as against the same period of the previous financial year.

The total net GST collection in the first quarter came at ₹5.40 lakh crore, witnessing an 7.1% growth after adjusting for the total refund.

It is apparent from the quarterly figures that there has been steady growth in the GST collection figures on a yearly basis with the share varying from the domestic as well as import-based revenue.

It is evident from the June data that the revenues based on imports were the main reason behind GST growth whereas domestic collections grew slowly after accounting for refunds.