NEW DELHI: GST collections rose 6.5% to Rs 1,86,315 crore in Aug, driven entirely by domestic mop up.Collections in Aug, based on transactions in July, are typically a little muted due to rains in most parts of the country and sales begin to pick up in Aug due to the start of the festival season.According to official data, collections from domestic sources went up by 9.6% to Rs 1,36,962 crore, while those from imports were 1.2% lower at a little over Rs 49,000 crore.On a net basis, however, GST revenue was estimated 10.7% higher at Rs 1,66,956 crore as refunds fell. Refunds were nearly 20% lower at Rs 19,359 crore after govt had rushed through with payments over the last few months. The reasons for the fall were, however, unclear.“While one argument could be that the refund applications are tremendously down, due to a hit in exports, yet this seems improbable as the gross revenue still is growing by around 10%. Therefore, the better reason for degrowth in refunds would be the possible holding back of refunds on ground. In these times of geo-political uncertainty, when the Indian manufacturers and exporters are reeling under pressure, it is important that the state and Centre GST formations clear up the GST refunds to support GDP growth,” said Vivek Jalan, partner at Tax Connect Advisory Services.Collections during Sept are expected to be weak due to floods in several parts of the country as well as muted sales during the second half of Aug as the announcement of GST rationalisation prompted consumers to hold back purchases.“After a 1.7% growth last month, a double-digit growth in Aug is encouraging, despite geopolitical headwinds. With expected GST cuts on many products later this month, govt would be closely monitoring the collections over next few months,” said Pratik Jain, partner at consulting firm Price Waterhouse & Co.Among the states, in Aug, only Manipur saw a decline, a sharp fall of 24%. Sikkim (39% growth), Meghalaya (35%) and Nagaland (33%) were the top performers.