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Gross GST collections stood at INR2.0t in Aug’26

* India’s gross GST revenue stood at INR2.0t in Aug’26 (INR1.7t in Aug’25 and INR2.1t in Jul’26), registering a 14.8% YoY growth. This follows 15.4% growth in Jul’26 and 13.9% growth in Jun’26, marking the third consecutive month of doubledigit growth. The strong growth was primarily driven by a sharp rise in GST from imports (29.5%), mainly intermediate and capital goods, while domestic GST collections (8.3%) also recorded healthy growth. On a month-on-month basis, collections were, however, down 5.4% from Jul’26.

* August was the second consecutive month when gross GST collections touched INR2t, suggesting that revenue base is broadening and economic activity, particularly investment demand, continues to remain resilient.

* During Apr-Aug’26, gross GST collections stood at INR10.6t, registering 12.7% YoY growth.

* Among the major states, Uttar Pradesh recorded strong GST collection growth in August, with revenues rising 19% YoY to INR90.9b, followed by Telangana (16% YoY), Gujarat (15% YoY), Karnataka (13% YoY), Kerala (13% YoY), Punjab (12% YoY), and Haryana (12% YoY). Maharashtra collections increased 8% YoY, with INR287.8b posting healthy growth. In contrast, collections remained weak in a few states. Himachal Pradesh recorded a 23% YoY decline, followed by Meghalaya (-21%), Jammu & Kashmir and Uttarakhand (-9% each), and Odisha and Andhra Pradesh (-7% each), while Tamil Nadu and Rajasthan reported declines of 1% and 2%, respectively.

* The upcoming GST Council meeting on September 12 could mark a shift in policy priorities from revenue mobilization toward simplification and ease of compliance. With monthly GST collections now consistently around INR2t following last year’s rate rationalization, the focus could increasingly move toward streamlining the GST framework, while sustained collections provide comfort on the revenue side.

GST from imports remain strong:

* GST collections from imports rose 29.5% YoY to INR626b in Aug’26, compared with INR486b in Aug’25 and INR665b in Jul’26. Import-linked GST, therefore, accounted for more than half of the INR 258b increase in gross GST collections during the month.

* GST collected from domestic activities grew 9.3% YoY to INR1.37t in Aug’26. Domestic collections comprised Central GST (CGST) of INR384.1b, State GST (SGST) of INR463.2b, and Integrated GST (IGST) of INR525.2b.

* GST refunds rose 70% YoY to INR318b in Aug’26, while net GST collections grew 8.3% YoY to INR1.68t. Even after a near 24% rise in refunds during the first five months of FY27, net GST collections have risen 9%

Outlook:

* GST collections are expected to remain supportive of fiscal revenues in the near term, with domestic GST growth showing a clear improvement and import-linked collections continuing to provide a strong boost. The 8.3% YoY growth in domestic GST collections in August indicates a broad-based improvement in underlying economic activity, while the continued growth in import-linked GST and the sharp rise in refunds suggest that the headline growth rate somewhat overstates the strength of domestic demand. Going forward, sustained domestic consumption, investment activity, improved tax compliance, and the upcoming festive season should support GST collections, while the high base and normalization of import-led growth could moderate headline GST growth.

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