GST Collection Rises 6.5% in August to ₹1.86 Lakh Crore on Strong Domestic Revenues

Authored By Shishta Dutta | Published at: Sep 1, 2025 05:19 PM IST

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New Delhi, Sep 1, 2025 – India’s gross Goods and Services Tax (GST) collection surged by 6.5% year-on-year to ₹1.86 lakh crore in August 2025. According to official data released on Monday, the surge in GST collection was supported by higher domestic revenues. In comparison, gross GST mop-up stood at ₹1.75 lakh crore in August 2024. However, on a sequential basis, collections decreased from ₹1.96 lakh crore reported in July 2025.

Domestic Growth Strong, But Imports Weaken

There was a 9.6% increase in the domestic GST revenue year-on-year to ₹1.37 lakh crore in August. Due to continued surge in internal consumption. On the other hand, tax revenues from imports slipped 1.2% to ₹49,354 crore, as a result of softer external trade activity. Refund outgo also declined, with GST refunds falling 20% year-on-year to ₹19,359 crore.

Net Revenue Shows Double-Digit Growth

Net GST revenue after refunds reached ₹1.67 lakh crore in August 2025. This is marking a 10.7% increase compared to the same month in the previous year.

Policy Context

The release of the GST data comes just ahead of the upcoming GST Council meeting which is scheduled for later this week. The upcoming GST meeting will discuss rate rationalisation and to reduce the number of tax slabs. If this happens, it will be a major reform and will simplify India’s indirect tax structure. It remains to be seen what reforms are carried out in the upcoming meeting and how the new set of rules affect the Indian markets in the long run.

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