GST revenue rises 6.5% to Rs 1.86L crore in August

GST collection in August rose 6.5 per cent to over Rs 1.86 lakh crore with increased domestic sales, and the upcoming festive season is likely to swell the kitty going forward.

The August Goods and Services Tax (GST) mop-up is, however, lower than Rs 1.96 lakh crore collected in July. In August 2024, the collection was Rs 1.75 lakh crore. The gross domestic revenue grew 9.6 per cent to Rs 1.37 lakh crore, while tax from imports dipped 1.2 per cent to Rs 49,354 crore in August. GST refunds were down 20 per cent year-on-year to Rs 19,359 crore.

EY Tax Partner Saurabh Agarwal said the significant dip in export refunds was a clear signal of the impact that global tariffs were having on the export sector.

“Despite global headwinds and geopolitical tensions, robust domestic consumption has so far held its own, suggesting that India's growth trajectory remains on a solid footing,” Agarwal said.

Net GST revenue stood at Rs 1.67 lakh crore in August 2025, recording 10.7 per cent year-on-year growth. Deloitte India Partner MS Mani said: “The increase in collections is in line with the GDP growth data shared recently and would give the policy makers the confidence to move ahead with GST 2.0 reforms slated to be discussed in the GST Council Meeting this week.”

ICRA Chief Economist Aditi Nayar 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. “The contraction in IGST on imports is puzzling in light of the sharp increase in merchandise imports in July 2025 (that would have reflected in the August 2025 GST data),” Nayar said.