India’s GST revenue for August showed a 6.5% year-on-year increase to ₹1.86 lakh crore, driven largely by strong domestic sales, though it fell short of July’s ₹1.96 lakh crore. According to government data, gross domestic revenue rose 9.6% to ₹1.37 lakh crore, while GST from imports dropped 1.2% to ₹49,354 crore. Notably, export-related GST refunds fell sharply by 20% to ₹19,359 crore, highlighting the impact of global tariff pressures—particularly from the US.
Saurabh Aggarwal of EY noted that the decline in export refunds reflects global trade disruptions, urging proactive government efforts to strengthen trade ties and ensure Indian exporters stay competitive. He also mentioned that lower refund claims from inverted duty structures indicate improvements in the tax system.
ICRA’s Aditi Nayar observed strong growth in Central and State GST collections, but relatively weak gains in IGST and cess collections, despite rising imports in July.
This update comes just ahead of a key GST Council meeting, where major tax reforms—including reducing GST rates on 175 products—are expected. Deloitte’s MS Mani predicts festive demand could boost revenues, though rate cuts may cause short-term moderation.
+ There are no comments
Add yours