India’s gross goods and services tax (GST) collections jumped 14.8 per cent year-on-year to nearly ₹2 trillion in August, data released by the Ministry of Finance on Tuesday showed. However, collections were lower sequentially than the ₹2.11 trillion recorded in July.
Growth in import-related GST collections continued to outpace domestic revenue during the month. Gross domestic GST revenue rose 9 per cent year-on-year to ₹1.37 trillion, while gross GST revenue from imports surged 29 per cent to ₹62,604 crore.
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, said Saurabh Agarwal, tax partner at EY India.
Net GST collections, after adjusting for refunds, rose 8.3 per cent year-on-year to ₹1.68 trillion in August. Net collections were down a little over 7 per cent month-on-month.
GST refunds jumped 68 per cent year-on-year to ₹31,795 crore in August. Domestic refunds increased nearly 73 per cent to ₹18,490 crore, while refunds of GST paid on imports rose nearly 62 per cent to ₹13,305 crore.
On a cumulative basis, the government’s gross GST collections during April-August of 2026-27 (FY27) were up 11 per cent year-on-year to ₹10.43 trillion, while net GST collections rose 9 per cent to ₹8.89 trillion.
“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.
