Monthly GST collection was at ₹1.65 trillion in July, the same as the average monthly GST collection projected for this fiscal year by policymakers.

Compared to the receipts in July, GST revenue in August showed moderation in the tax collected by the Centre (CGST), states (SGST) and the revenue from imports and inter-state sales (IGST), but experts said the slight fluctuation in monthly tax figures does not suggest anything of concern about India's consumption story.

After the settlement of taxes for inter-state sales, the Centre collected ₹65,909 crore, while states collected ₹ 67,202 crore, the ministry said. Tax receipts usually see a spike in the first month of a quarter due to hectic economic activity in the previous quarter-ending month, after which a slight moderation is seen in the subsequent two months. This year, April saw the highest-ever GST revenue collection of ₹1.87 trillion, followed by the second highest in July.

The ministry said that revenue from the import of goods was 3% higher year-on-year in August, while revenues from domestic transactions (including import of services) were 14% higher.

Aditi Nayar, chief economist and head of research and outreach at rating agency ICRA Ltd, said that the headline GST number is marginally lower than the agency's forecast, dampened by imports, which is a matter of commodity prices. The overall collection so far this year remains robust, Nayar said. Major state economies Uttar Pradesh, Maharashtra, Gujarat and Tamil Nadu reported a double-digit annual growth rate in GST collections. While Maharashtra reported a strong 23% jump in GST revenue to ₹23,282 crore in August, Karnataka saw a 16% jump in revenue to ₹ 11,116 crore and Gujarat a 12% jump to ₹9,765 crore, official data showed.

Experts also said that while GST collections remain robust, some factors could dampen revenue receipts in the future.

"The steady increase in revenue not only reflects a resurgence in consumer demand but also underscores the government's ongoing efforts to boost capital expenditure, which, in turn, is encouraging private investment. Nonetheless, it's worth noting that future growth prospects may be tempered by factors such as below-par monsoon conditions, elevated inflation, and higher interest rates," said Saurabh Agarwal, a tax partner at EY. Inflation measured by the consumer price index (CPI) was at 7.44% in July, way above the central bank's tolerance limit of 6%, with rural and urban food price inflation remaining in double digits. This prompted the finance ministry to caution in its latest monthly economic review that while economic growth continues to be driven by domestic consumption and investment demand, greater vigilance by the government and RBI is warranted on inflationary pressures.