NEW DELHI: GST collections grew at double-digit rates for the third straight month on the back of a 29% jump in the mop-up from imports in Aug, while revenue from domestic transactions was up 9.3%.Latest available data estimated GST collections to have risen 14.8% to Rs 1,99,853 crore, with over two-thirds coming from domestic sources, while Rs 62,604 crore came from imports. The collections in Aug relate to transactions in July.The soaring revenue from imports is on account of higher cost of several commodities — from crude to fertiliser and bullion. At the same time, higher consumption for white goods and automobiles have partly made up for the cut in rates, which took effect last Sept.“These collections are a very reliable barometer of the economy since they cover both goods and services consumption across the country. There does not appear to be any slowdown in economic activity and consumption in India, despite the tariff headwinds and the West Asia situation. Considering the fact that collections have shown a marked increase month-on-month despite the rate reductions in Sept 2025 , the GST Council should consider further easing of the input tax credit restrictions , audit rationalisation and reducing compliance burden. This would enable businesses to perform better in an increasingly competitive and complex operating environment,” said MS Mani, partner at Deloitte India, a consulting firm. The GST Council is due to meet later this month.“The uptick in exports across electronics, mobile phones and automotives is a positive validation of govt’s manufacturing-focused policy interventions, signalling that India’s positioning in global value chains is strengthening. That said, the concurrent rise in imports 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 Agrawal, partner at EY India, another consulting firm.During Aug, refunds were up nearly 68% to Rs 31,795 crore. This meant that net collections were 8.3% higher at Rs 1,68,057 crore. Manipur (down 38%), Jharkhand (-22%) and Chhattisgarh (-18%), however, were among states where collections fell, while Assam (97%), Gujarat (28%) and Mizoram (22%) led the growth charts.
