Gross GST collections in August grew 10 per cent to about ₹1.75 lakh crore (trillion), reflecting higher domestic consumption.

Government data released on Sunday showed gross GST revenues from domestic transactions to grow 9.2 per cent to about ₹1.25 lakh crore.

Revenues from the import of goods were up 12.1 per cent to ₹49,976 crore.

In July, gross Goods and Services Tax (GST) mop-up was ₹1.82 lakh crore, while in August last year it was ₹1.59 lakh crore.

M.S. Mani, partner, Deloitte India, said a 10 per cent increase in collections at the start of the festive season indicates consumption is robust and will only improve further.

“This would give renewed confidence that the collection targets for the year would be achieved. There are some differences in the GST collection increases across major states which may need a deep dive,” Mani said.

Refunds worth ₹24,460 crore were issued during August, 38 per cent more than the year-ago period.

After adjusting refunds, net GST revenue increase was 6.5 per cent at ₹1.5 lakh crore in August.

EY tax partner Saurabh Agarwal said: “The government’s commitment to reduce working capital costs for businesses facing inverted duty structure is demonstrated by the higher domestic GST refunds. By rationalising rates, the government aims to address this issue over time,” Agarwal said.

Mani said the ability of large states such as Maharashtra, Karnataka, UP, MP and Haryana to record double digit increases in collections once again indicates robust consumption in these states accompanied by the tax authorities’ measures to improve compliance and crack down on evasion.

However, the single digit increase in states such as Gujarat, Andhra Pradesh and Tamil Nadu would engage the attention of the tax authorities, Mani added.

KPMG indirect tax head & partner Abhishek Jain said the GST collections seem to have stabilised around ₹1.75 lakh crore.

“With the kick-off to festivities, the next few months is expected to witness a further surge,” Jain added.