GST collections cross Rs 2.11 lakh crore in July, imports surge 28.8%

India's gross GST collections crossed Rs 2.11 lakh crore in July, the second-highest monthly mop-up since the regime began in July 2017. The 15.4% year-on-year growth outpaced the Union Budget's nominal GDP assumption of 10%. Import-related GST rose 28.8%, far exceeding domestic revenue growth of 10.1%, Livemint reports.

The Economic Survey links faster-than-GDP growth to better compliance, technology-driven monitoring and business formalisation. Pratik Jain of Price Waterhouse & Co LLP said sustained double-digit growth signals resilient economic activity and could pave the way for GST 3.0 reforms. Saurabh Agarwal of EY India noted broad-based momentum, particularly in Haryana and Gujarat, driven by real estate and manufacturing capex.

Total refunds rose 13.1% to Rs 29,968 crore, indicating revenue growth was not achieved by holding back refunds. Economists view monthly GST data as a key high-frequency indicator of formal economic activity, offering early signals on consumption and tax compliance.