India’s Goods and Services Tax (GST) collections rose 9.2% in the latest quarter, with net revenue touching Rs 7.21 lakh crore, according to official data.
The growth reflects a steady expansion in overall tax collections, supported by both domestic activity and strong import-led revenues. Total gross GST revenue for the period stood at Rs 8.42 lakh crore, marking a 10.1% increase compared to the previous year.
“July’s GST collections have come in strong, and the momentum looks healthy. Much of the growth this month was driven by imports; though it’s worth digging into whether that’s finished goods or raw materials, and how much of it simply reflects a weaker rupee rather than higher volumes. Domestic collections have grown steadily too, and with refunds also rising and there being fiscal headroom possibly, this may be a good moment to start thinking about a GST 3.0 – specifically refunds on input services for inverted duty structure companies,” said Abhishek Jain, Indirect Tax Head & Partner, KPMG.
Monthly trends also indicate sustained momentum. In July 2026, gross GST collections rose 15.4% year-on-year to Rs 2.11 lakh crore. Domestic revenue increased 10.1% to Rs 1.44 lakh crore, while GST from imports surged sharply by 28.8% to Rs 66,511 crore, highlighting the stronger role of external trade in driving collections besides the heightened levels of import overall.
Interestingly, refunds saw a notable rise during the period. Total refunds increased 15.8% year-on-year to Rs 1.21 lakh crore, with export-related refunds continuing to grow, supporting liquidity for exporters.
Net GST revenue for July 2026 alone climbed 15.8% to Rs 1.81 lakh crore, indicating robust tax realisation despite moderate domestic consumption trends.
The latest quarterly jump builds on a more moderate trend seen earlier. In May 2026, GST collections had risen 3.2% year-on-year to Rs 1,94,184 crore, with net revenue at Rs 1,66,904 crore after refunds. For April–May 2026, collections had grown 6.2% to Rs 4.37 lakh crore.
However, the earlier quarter showed uneven trends. Domestic GST revenue had declined 2.6% year-on-year in May, while collections from imports surged over 19%, highlighting a gap between internal demand and external trade. Export-related refunds had also risen sharply, supporting liquidity for businesses.
Experts had noted that import-driven growth, partly influenced by rupee depreciation, was offsetting relatively moderate domestic consumption. Against this backdrop, the 9.2% rise in the latest quarter suggests a stronger and more broad-based recovery in GST collections, even as imports continue to play a significant role.