With strong growth under import head, the gross collection from Goods & Services Tax (GST) surged over 15 per cent to over ₹2.11 lakh crore in July. Collection in July is related to the goods consumed and services availed in June.According to data made public on GST portal, collection from domestic sources rose over 10 per cent to around ₹1.45 lakh crore reflecting consumption picking up.During the month, collection from imported sources rose around 19 per cent to over ₹66,000 crore. Refunds for domestic sources and for custom grew over 10 per cent and 30 per cent respectively.One key feature of all these numbers was well spread growth.“Out of 36 States and Union Territories, 28 recorded positive revenue growth, with several large economies such as Maharashtra, Gujarat, Karnataka, and Telangana posting double digit increases. This broad based expansion highlights the depth of India’s tax base and the vibrancy of its markets,” Vivek Jalan, Partner at Tax Connect Advisory Services LLP said.20252026% Change Gross Domestic Revenue1.311.4410.1%Gross Import Revenue0.520.6628.8%Gross GST Revenue1.832.1115.4%Refund- Domestic0.160.1822.7%Refund - Export0.100.1222.7%Net GST Revenue1.561.8115.8%Source: GST PortalHe also added that, the timing of statutory milestones may have also contributed to buoyancy.The requirement of pre deposit for GSTAT filings, with the due date of July 31, 2026 ensured timely inflows of pre-deposit and strengthened revenue discipline.Additionally, “the approaching time barring deadlines – September 30, 2026 for Section 73 notices relating to FY 2022 23, and August 31 2026 for Section 74 notices relating to FY 2020 21 - have prompted proactive compliance and accelerated part of alleged demand realization,” he added.Some experts feel that current geo political situation also pushed the collection.Manoj Mishra, Partner at Grant Thornton Bharat said that the defining feature is the 28.8 per cent surge in import GST —consistent with total imports expanding 26.85 per cent in June and amplified by rupee depreciation, which increased the taxable rupee value of imported energy, commodities and industrial inputs.Continuing US–Iran hostilities and disruption across critical West Asian energy and shipping corridors have further elevated oil, freight and landed costs. Yet this is not solely an import-price story: domestic GST grew a robust 10.1 per cent reflecting resilient household consumption, formalisation and industrial activity,” he said.Though experts are happy with growth rate for overall collection, but they have some concerns too. “One cannot ignore the elevated levels of import GST collections, which remain a nagging concern.This points to a persistent gap in domestic manufacturing capability despite the range of successful PLI and Atmanirbhar Bharat interventions rolled out over the past few years,” said Saurabh Agarwal, Tax Partner at EY IndiaFurther, according to him, it is likely that the sustained push by policymakers towards localisation of around 100 products (being talked about) over a period of time will help bridge this gap.“Deeper value-chain localisation of this nature by using left out budgets from previous PLI schemes will be critical if India is to convert consumption-led growth into a more durable, manufacturing-anchored expansion,” he said.According to Pratik Jain, Partner at Price Waterhouse, if this growth momentum continues over the next few months, it could provide the Government with the confidence to accelerate the next phase of GST reforms as the regime approaches its 10-year milestone.These reforms may span structural, legislative and administrative measures. GST 3.0 may no longer be a distant idea. It could be closer than many expect,” he said.Published on August 1, 2026