The Unified Payments Interface (UPI) platform processed a record 24.51 billion transactions worth ₹29.82 lakh crore in the month, underlining consumer demand. Year-on-year, transaction volume increased 22%, while transaction value went up 20%. Power consumption rose 12.9% YoY to 169 billion units.
Read more: India manufacturing PMI falls to 5-year low in August as demand weakens
These numbers signal momentum persisting in July-September after data released on Monday showed the economy expanded by a better-than-expected 7.8% in April-June.
Petrol sales rose 7.9% and diesel sales 6.5% year-on-year in August, aided by increased mobility, stronger vehicle sales and an expanding economy. Aviation turbine fuel (ATF) sales rose 1.4%, while cooking gas sales fell 16.1%, according to preliminary data from the oil ministry.
GST collections from imports continued to be the primary performance driver, accelerating 29% from a year earlier to Rs 62,604 crore, while domestic revenue from the levy rose 9.3% to more than Rs 1.37 lakh crore in August, buoyed by durable demand at home.
Read more: India’s gross GST revenue up 14.8% on year to nearly Rs 2 lakh crore in AugustThe strong GST growth, combined with 7.8% GDP expansion in the June quarter, reflected the strength of the Indian economy despite geopolitical conflicts and global economic uncertainty, said Abhishek Jain, partner and national head, indirect tax at KPMG in India.
The latest numbers portray a mix of healthy consumption, expanding formalisation of the economy and improving compliance.
“These collections are a very reliable barometer of the economy since they cover both goods and services across the country,” said MS Mani, partner, tax at Deloitte India. “There does not appear to be any slowdown in economic activity and consumption in India, despite the tariff headwinds and west Asia situation.”
Experts are optimistic that, despite an uncertain global outlook, GST collections will continue to surge from October onwards, backed by upcoming festivals when demand for consumer goods traditionally grows. “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,” said Saurabh Agarwal, tax partner at EY India.
Agarwal said the concurrent rise in imports showed the need for deeper localisation and import substitution.
After refunds, net GST collections stood at Rs 1.68 lakh crore, up 8.3% year-on-year. Refunds surged 68% to Rs 31,795 crore, tempering the growth in the net tax take but also reflecting a sharp rise in refund processing.
Mani said the sustained strength in collections should prompt the GST Council to look at easing input tax credit restrictions, rationalising audits and reducing compliance requirements, when it meets next on September 12.
“Businesses would expect fewer restrictions on ITC (input tax credit), centralisation of audits across states, simpler compliance for service providers, improved ease of registration and deregistration,” said Mani.
Total gross GST revenue during April to August rose 11% from a year earlier at Rs 10,42,757 crore. Total net GST revenue during the period increased 9% at Rs 8,89,523 crore.