NEW DELHI: India’s gross goods and services tax (GST) collections rose 14.8% to ₹1.99 trillion in August from ₹1.74 trillion a year earlier, with collections from imports contributing significantly to the increase, according to provisional data released by the finance ministry on Tuesday.
However, August collections were lower than ₹2.11 trillion in July, when GST collections crossed the ₹2 trillion mark for the second time. July’s mop-up was the second-highest monthly GST collection since the tax regime was introduced in July 2017, after the record ₹2.43 trillion collected in April 2026.
Gross domestic GST revenue rose 9.3% to ₹1.37 trillion last month from ₹1.25 trillion a year earlier. collected on imports increased 29% to ₹62,604 crore from ₹48,546 crore. The gross collections were broadly in line with the ₹1.95 trillion collected in June.
The increase in gross collections, however, was partly offset by a sharp rise in refunds. Refunds increased 67.9% to ₹31,795 crore in August from ₹18,935 crore a year earlier. Domestic refunds rose 72.6% to ₹18,490 crore, while export GST refunds processed through the ICEGATE platform increased 61.8% to ₹13,305 crore, the government data showed.
Domestic refunds are driven largely by inverted duty structures, where input taxes are higher than output taxes.
“It highlights the need for the GST Council to correct the inverted duty structure, restore competitiveness and reduce working capital stress for businesses,” said Vivek Jalan, a partner at Tax Connect Advisory Services. “Export refunds are linked to zero‑rated exports under GST, where exporters claim back IGST paid on inputs or imports. There is some short-term misalignment and timing gap, I feel, as exports are flat and refunds are rising.”
Manufacturing validation
“The uptick in exports across electronics, mobile phones and automotives is a positive validation of the government’s manufacturing-focused policy interventions, signalling that India’s positioning in global value chains is strengthening,” said Saurabh Agarwal, tax partner at EY India.
That said, the concurrent rise in imports points to continuing dependence on external sourcing in certain segments, reinforcing the need for a calibrated policy push towards deeper localization and import substitution in these sectors, said Agarwal.
“Looking ahead, with round the corner, revenue collections over the next couple of months are likely to trend higher, supported by increased consumer spending,” he said.
Net GST revenue rose 8.3% to ₹1.68 trillion in August from ₹1.55 trillion a year earlier. Net domestic GST revenue increased 3.4% to ₹1.18 trillion, while net revenue from customs-related GST rose 22.3% to ₹49,299 crore, the data showed.
The August data shows a clear difference between domestic and import-linked . Gross domestic revenue increased by ₹11,679 crore over the year, while gross GST revenue from imports increased by ₹14,058 crore. The import component accounted for more than half of the ₹25,737 crore increase in gross GST collections during the month.
For the April-August period, gross GST collections increased 11% to ₹10.42 trillion from ₹9.39 trillion during the corresponding period of FY26. Gross domestic GST revenue during the five-month period rose 5.3% to ₹7.36 trillion, while gross GST revenue from imports increased 27.3% to ₹3.06 trillion.
“The double-digit year-to-date growth is encouraging to see despite the rate cuts in September 2025,” said Pratik Jain, a partner at Price Waterhouse & Co LLP. “Monthly growth of around 15% in collections is also strong, fuelled by imports even though there have been geopolitical headwinds over the last few months. As the concerns around GST collections are less, the GST Council may be able to take bolder reform measures in the upcoming meeting.”
The 57th GST Council meeting is scheduled for 12 September.
Refunds during April-August increased 23.8% to ₹1.53 trillion, compared with ₹1.24 trillion a year earlier. Domestic refunds rose 29.2% to ₹90,925 crore, while export GST refunds through ICEGATE increased 16.6% to ₹62,309 crore.
After refunds, net GST revenue during April-August stood at ₹8.89 trillion, up 9% from ₹8.15 trillion a year earlier. Net domestic revenue increased 2.7% to ₹6.45 trillion, while net customs revenue rose 30.4% to ₹2.44 trillion.
Assam surprise
In a surprise move, Assam recorded the sharpest growth among major states as the state-wise data showed a mixed trend in August. Assam recorded a 162% increase in GST revenue to ₹3,679 crore, compared with ₹1,403 crore a year earlier. Uttar Pradesh recorded 19% growth, Gujarat 15%, Karnataka 13%, Kerala 13%, Telangana 16%, Punjab 12% and Haryana 12%.
Equally encouraging was the pickup in collections from Arunachal Pradesh, Nagaland, Mizoram, 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.
Among the major states, Maharashtra remained the largest contributor, with GST revenue of ₹28,779 crore in August, up 8% from ₹26,746 crore a year earlier. Karnataka’s collections rose 13% to ₹14,148 crore, while Gujarat’s increased 15% to ₹12,047 crore. Uttar Pradesh recorded a 19% increase to ₹9,092 crore.
GST revenue fell 23% in Himachal Pradesh, 21% in Meghalaya, 9% each in Jammu and Kashmir and Uttarakhand, 7% each in Odisha and Andhra Pradesh, and 2% in Rajasthan and Goa. Tamil Nadu’s collections declined 1%.