Central and state governments collected ₹1.68 trillion in Goods and Services Tax (GST) revenue in August after adjusting for tax refunds, an 8.3% growth from the tax revenue collected in the same month a year ago under the previous tax structure, official data showed on Tuesday.
GST rates were restructured in September last year to boost consumption demand.
Gross GST revenue receipts of central and state governments before accounting for refunds stood at ₹1.99 trillion in August, showing a 14.8% growth annually.
In July, central and state governments had collected ₹1.81 trillion in GST revenue after adjusting for ₹29,968 crore of tax refunds.
Merchants get refunds for the taxes that go into their exports, while domestic suppliers claim refund for their unused tax credits.
Growth in import-related GST collections continued to outpace domestic revenue during the month.
Gross domestic GST revenue rose 9.3 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.
GST refunds jumped 68 per cent year-on-year to ₹31,795 crore in August.
Within this, 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.
The sharp increase in refunds reflects that faster refund processing is supporting business liquidity while tempering headline revenue gains, said Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat.
“From a policy standpoint, the data suggests that GST has evolved beyond a tax collection mechanism into a real-time economic barometer, with sustained compliance, formalisation and investment activity providing a durable foundation for revenue growth going forward,” Mishra added.
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, at ₹10.43 trillion, while net GST collections rose 9 per cent to ₹8.90 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.
As GST collections remain on a strong trajectory, experts expect the government to consider strong reform measures at the upcoming GST Council meeting amid limited to negligible concerns over GST collections.
“As the concerns around GST collections are lesser, the GST council may be able to take bolder reform measures in the upcoming meeting,” said Pratik Jain, Partner, Price Waterhouse & Co LLP.
The GST Council is scheduled to meet in New Delhi on September 12, following an officers’ meeting scheduled for September 11, according to the official notice issued by the GST Council Secretariat.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.