GST Collections Rise 14.8% To Near ₹2 Lakh Crore
August's gross GST mop-up hit ₹1.99 lakh crore, driven by a 29% surge in import revenue even as refund outflows climbed sharply
Synopsis
The gross collection of Goods and Services Tax (GST) rose 14.8% year-on-year to ₹1.99 lakh crore in August 2026, data released on September 1 by the government indicated. Import revenue was up 29% compared to the 9.3% increase for domestic transactions. In advance of the meeting of the GST Council on 12 Sept, net collections fell by 8.3% to ₹1.68 lakh crore as refunds jumped 68% to ₹31,795 crore.
The home market meets an inflow of imports
GST collections of gross goods and services (GGS) were at ₹1,99,853 crore in August 2026, up 14.8 per cent from the collections of ₹1.74 lakh crore in the same month last year, provisional government data showed on Tuesday. The figure was below the target of ₹2 lakh crore but continued a trend of double-digit growth in indirect tax collections every year.
However, domestic GST revenues increased steadily by 9.3% to ₹1,37,249 crore from ₹1,25,570 crore in the corresponding period of last year, mainly driven by import revenues which increased 29.0% to ₹62,604 crore. The divergence indicates that the customs linked GST, which is closely aligned with global trade flows and commodity prices is working faster than the other domestic consumption drivers, a point that could be considered by policymakers at the upcoming Council session.
The Refund Effect
There was an undercurrent to the headline growth figure. Domestic GST refunds rose 72.6% year-on-year to ₹18,490 crore, while export tax refunds processed through the ICEGATE increased 61.8% to ₹13,305 crore, taking the total GST refunds to ₹31,795 crore from the previous year's ₹18,935 crore. After accounting for these outflows, net GST revenue at ₹1,68,057 crore during August is 8.3 per cent higher than the revenue of ₹1,55,181 crore collected during August 2025.
Sequentially, collections decreased from a stronger July. The gross GST revenue in August outperformed the benchmark (July 2025) by ₹1.74 lakh crore and the net GST revenue grew by nearly 9% year-on-year (April-August 2026) indicating that the GST buoyancy is still under one (around 0.7). A buoyancy ratio below one means that taxes are, for the moment, rising slightly more slowly than nominal GDP, which tax officials monitor closely.
Distribute the resources between the Centre and States
The total Central GST collection was at ₹38,413 crore in August and State GST at ₹46,316 crore. The major part of the remaining tax before settlement was integrated GST, which is mostly related to inter-state and import transactions.
What does this mean for the wider economy?
The collection trend is analysed in relation to other macroeconomic indicators. The total collection of GST has increased by 14.8% in the first quarter, adding to the positive economic trend, which was already reinforced by the 7.8% growth in Gross Domestic Product.
A review of the official data noted that "GST is one of the country's larger sources of indirect tax revenues and the gap between gross and net collection indicates the need to factor in refunds when understanding the government's actual GST revenues".
What Lies Ahead
The 57th meeting of the Goods and Services Tax (GST) Council will be held at 11 am on September 12 in New Delhi, according to an office memorandum issued by the GST Council Secretariat. The Council will be considering rate rationalisation and compliance measures in light of these figures.