GST Collections Climb 9.1 Percent Amid Rate Reforms
September mop-up hit ₹1.89 lakh crore, driven by import gains and consumer boost post-September 22 change
Goods and Services Tax (GST) revenues rose 9.1 per cent year-on-year to ₹1.89 lakh crore in September, marking resilient growth despite the rollout of lower tax rates in the second half of the month. Collections were also marginally higher than August’s ₹1.86 lakh crore, government data showed on Wednesday.
The reforms under GST 2.0, involving rate rationalisation on 375 items ranging from kitchen staples and medicines to electronics and automobiles, came into effect on September 22. Officials said the changes boosted consumer demand in the final days of the month. Of the total mop-up, domestic revenue rose 6.8 per cent to ₹1.36 lakh crore, while revenue from imports climbed 15.6 per cent to ₹52,492 crore. Net GST collections after refunds stood at ₹1.60 lakh crore, registering a 5 per cent rise from a year earlier, though refunds surged 40 per cent to ₹28,657 crore.
Tax experts noted that the growth reflects steady consumption trends despite market uncertainties ahead of the rate changes. “The increase to ₹1.89 lakh crore indicates no significant slowdown in economic activity in anticipation of rate cuts,” said M S Mani, partner at Deloitte India. He highlighted that average monthly collections in FY26 are nearing the ₹2 lakh crore mark, up from ₹1.8 lakh crore during the same period last year.
Also Read: Mexico Imposes Surprise Tariffs on Asian Goods in 2026 Budget
Vivek Jalan, partner at Tax Connect Advisory, said the data indicates a balancing act between pre-cut sluggishness and post-cut consumption surge. However, he pointed out lingering weaknesses in manufacturing states like Maharashtra, Gujarat, Tamil Nadu and Karnataka, where stock transfers slowed due to fears of input tax credit accumulation before September 22 and continued logistical bottlenecks thereafter.
Analysts believe upcoming festive season demand and improved supply chains will determine whether GST revenues maintain momentum in the months ahead.
Also Read: Modi Launches Historic Bharat Mata Coin For RSS Milestone
