India’s gross Goods and Services Tax (GST) collection rose 13.9% year-on-year to Rs 1.95 lakh crore in June, driven mainly by a sharp rise in tax revenue from imports that pushed overall growth despite relatively modest gains in domestic collections.
According to official data released on Tuesday, gross GST revenue was Rs 1.95 lakh crore in June, compared to Rs 1.71 lakh crore collected in the same month last year. While domestic GST collections rose 6.5% year-on-year to Rs 1.34 lakh crore, revenue from imported goods saw a much stronger expansion of 34.6%, reaching Rs 60,038 crore and emerging as the main contributor to the monthly growth.
Manoj Mishra, Head of Partner Disputes and Tax Management, Grant Thornton Bharat said, “While the sharp 25.2% increase in import GST provided the main boost, domestic collections continued to expand steadily, indicating that compliance and formalization remain strong. Equally noteworthy was the 28.4% increase in liquidity, particularly reflecting an increase in liquidity for refunds of exports without compromising revenue growth, this suggests that the tax administration is increasingly balancing efficient revenue collection with timely relief to taxpayers.
After adjusting for refunds, net GST collections rose 11.2% to Rs 1.62 lakh crore in June from Rs 1.45 lakh crore a year ago. Reimbursement payments stood at Rs 32,436 crore, up 29.1% from the corresponding period last year.
