New Delhi, Sept. 2 -- India's gross goods and services tax (GST) collections rose 14.8% to Rs.1.99 lakh crore in August from Rs.1.74 lakh crore a year earlier, with collections from imports contributing significantly to the increase, according to provisional data released by the finance ministry on Tuesday. However, August collections were lower than Rs.2.11 lakh crore in July, when GST collections crossed the Rs.2 lakh crore mark for the second time. July's mop-up was the second-highest monthly GST collection since the tax regime was introduced in July 2017, after the record Rs.2.43 lakh crore collected in April 2026. Gross domestic GST revenue rose 9.3% to Rs.1.37 lakh crore last month from Rs.1.25 lakh crore a year earlier. GST collected on imports increased 29% to Rs.62,604 crore from Rs.48,546 crore. The gross collections were broadly in line with the Rs.1.95 lakh crore collected in June. The increase in gross collections, however, was partly offset by a sharp rise in refunds. Refunds increased 67.9% to Rs.31,795 crore in August from Rs.18,935 crore a year earlier. Domestic refunds rose 72.6% to Rs.18,490 crore, while export GST refunds processed through the ICEGATE platform increased 61.8% to Rs.13,305 crore, the government data showed. Domestic refunds are driven largely by inverted duty structures, where input taxes are higher than output taxes. "It highlights the need for the GST Council to correct the inverted duty structure, restore competitiveness and reduce working capital stress for businesses," said Vivek Jalan, a partner at Tax Connect Advisory Services. "Export refunds are linked to zero-rated exports under GST, where exporters claim back IGST paid on inputs or imports. There is some short-term misalignment and timing gap, I feel, as exports are flat and refunds are rising." "The uptick in exports across electronics, mobile phones and automotives is a positive validation of the government's manufacturing-focused policy interventions, signalling that India's positioning in global value chains is strengthening," said Saurabh Agarwal, tax partner at EY India. That said, the concurrent rise in imports points to continuing dependence on external sourcing in certain segments, reinforcing the need for a calibrated policy push towards deeper localisation and import substitution in these sectors, said Agarwal. "Looking ahead, with the festive season round the corner, revenue collections over the next couple of months are likely to trend higher, supported by increased consumer spending," he said. Net GST revenue rose 8.3% to Rs.1.68 lakh crore in August from Rs.1.55 lakh crore a year earlier. Net domestic GST revenue increased 3.4% to Rs.1.18 lakh crore, while net revenue from customs-related GST rose 22.3% to Rs.49,299 crore, the data showed. The August data shows a clear difference between domestic and import-linked GST collections. Gross domestic revenue increased by Rs.11,679 crore over the year, while gross GST revenue from imports increased by Rs.14,058 crore....