The Ministry of Finance on Tuesday released data showing that the India's GST collections surged 14.8% year-on-year to nearly Rs 2 trillion in August. But the collections were on the lower side compared to Rs 2.11 trillion in the previous month of July.

Key Highlights

• GST collections grew 4.8% year-on-year to nearly Rs 2 trillion in August,down from Rs 2.11 trillion in July.
• Net GST collections increased by 8.3% YoY to Rs 1.68 trillion while refunds increased by 68% to Rs 31,795 crore.

Monthly GST Collections

Import-Related GST Growth Continues to Outpace Domestic Revenue

GST collections from imports remained strong compared to domestic collections during the month. GST revenue at gross level increased by 9 per cent year-on-year to Rs 1.37 trillion while gross GST revenue from imports jumped 29 per cent to Rs 62,604 crore.

The increase in import-related GST points suggests ongoing reliance on foreign sourcing in some areas, underscoring the importance of introducing a well-targeted policy push to achieve greater localisation and import substitution in these sectors, said Saurabh Agarwal, Tax Partner at  EY India.

Net Collections Rise 8.3% YoY, Refunds Surge 68%

Net GST collections stood at Rs 1.68 trillion in August, which increased by 8.3% when compared to August of the previous year, but decreased by less than 7% from months earlier.

The amount of refunds on GST rose by 68 per cent from the previous year on year to Rs 31,795 crore in August. Domestic refunds rose by almost 73% to Rs 18,490 crore and refunds of the amount of GST paid on imports went up by nearly 62% to Rs 13,305 crore.

Also Read: GST Collections Hit 14-Month High in July, Cross Rs 2 Lakh Crore Mark

Cumulative FY27 Collections Rise 11% YoY

Year-on-year cumulative figures of  government's gross GST collections for April-August in FY27 are 11% higher at Rs 10.43 trillion, while net GST collections are 9% higher at Rs 8.89 trillion.

Looking forward, Saurabh Agarwal said that in the coming few months there are higher chances of revenue collection to improve as the festive season approaches, which will also see the consumer spending rising.