India's gross Goods and Services Tax (GST) collections increased by 13.9% year-on-year to Rs 1.95 lakh crore in June, primarily driven by a sharp rise in tax receipts from imports that pushed the overall growth despite relatively modest gains in domestic collections.
According to official data released on Tuesday, gross GST revenues stood at 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 grew 6.5% year-on-year to Rs 1.34 lakh crore, revenues from imported goods recorded a much stronger expansion of 34.6%, reaching Rs 60,038 crore and emerging as the principal contributor to the monthly increase.
Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat said " While the sharp 25.2% growth in import GST provided the primary boost, domestic collections continued to expand steadily, indicating that compliance and formalisation remain strong. Equally noteworthy is the 28.4% increase in refunds, reflecting a conscious effort to improve liquidity for businesses, particularly exporters, without compromising revenue buoyancy. This suggests that the tax administration is increasingly balancing efficient revenue collection with timely taxpayer facilitation."
After adjusting for refunds, net GST collections grew by 11.2% to Rs 1.62 lakh crore in June from Rs 1.45 lakh crore a year earlier.Refund payments stood at Rs 32,436 crore, up 29.1% from the corresponding period last year.
