Industry Odisha Bureau, Aug 5: The collections of India’s Goods and Services Tax (GST) have reportedly grown faster than the Gross Domestic Product (GDP) in recent years.
Financial experts and economists have reportedly stated that, “Such a development reflects India’s higher economic activity as well as improvements in tax administration.”
As per media reports, “India’s gross 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, while it remained broadly stable at around Rs 1.95 trillion in May and June this year. On the contrary, India’s GST collections in July 2025 had been Rs 1.83 trillion.”
The Economy Survey 2026-27 has reportedly “attributed this development to better compliance, technology-driven monitoring and the gradual formalisation of businesses.”
Media reports, citing Government data, have stated that, “Gross GST collections outpaced nominal GDP growth in fiscal year 2022-23 (FY23) and fiscal year 2023-24 (FY24), rising 22.1% and 11.7%, respectively against nominal GDP growth of 16.1% and 9.6%.”
Media reports, citing Government data, have also stated that, “GST collections increased 9.4% in fiscal year 2024-25 (FY25) against nominal GDP growth of 9.8%, and 8.3% in fiscal 2025-26 (FY26), due to rate rationalisation, compared with nominal GDP growth of 8.9%.”
Media reports, citing Government data, have further stated that, “GST revenue growth has accelerated in fiscal year 2026-27 (FY27), with July collections rising 15.4% year-on-year (YoY), well above India’s Union Budget’s nominal GDP growth assumption of 10% for the current fiscal year.”
