New Delhi, Aug. 4 -- After remaining broadly stable at around Rs.1.95 trillion in May and June, India's gross Goods and Services Tax (GST) collections crossed Rs.2.11 trillion in July, the second-highest monthly mop-up since the indirect tax regime was introduced in July 2017. Mint explains the reasons behind the uptick, including a bigger structural change in the GST ecosystem.

GST collections have grown faster than nominal GDP in recent years, reflecting not only higher economic activity but also improvements in tax administration. The Economic Survey has attributed this trend to better compliance, technology-driven monitoring and the gradual formalisation of businesses, which have helped widen the tax base without increasing tax rates...