GST collections in August rise by 6.5% to Rs 1.86 trillion

The gross Goods and Services Tax (GST) collections in August rose 6.5 per cent year-on-year to Rs 1.86 trillion compared with Rs 1.75 trillion in the same month last year, data released by the government said on Monday.

It was led by higher domestic transactions, even as receipts from imports slowed.

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On a sequential basis, however, collections moderated from Rs 1.96 trillion in July.

Domestic GST revenue registered a healthy 9.6 per cent growth to Rs 1.37 lakh crore, reflecting buoyant consumption and business activity within the country. In contrast, tax collections from imports slipped 1.2 per cent to Rs 49,354 crore, suggesting subdued external trade.

Refunds during the month also saw a sharp correction, declining 20 per cent year-on-year to Rs 19,359 crore. Net GST revenue stood at Rs 1.67 trillion in August, marking a robust 10.7 per cent annual growth.

The resilience highlights the strength of internal demand despite global trade headwinds.

Notably, the government has consistently seen monthly GST collections staying above the Rs 1.6 trillion mark through the current fiscal, with revenues crossing Rs 2 trillion in peak months.

Aditi Nayar, Chief Economist, ICRA, said, “While CGST and SGST recorded a double-digit expansion, the growth in IGST and cess collections was tepid, dampening the headline GST increase to 6.5 per cent. Low inflation readings for the WPI and the CPI may partly be dampening the GST growth.”

“The contraction in IGST on imports is puzzling in light of the sharp increase in merchandise imports in July 2025 (that would have been reflected in the August 2025 GST data).”

The meeting of the GST Council, comprising the Centre and states, is also scheduled this week. It will deliberate on rate rationalisation and reducing the number of tax slabs.