September GST collections rise 9.1% to reach Rs.1.89 lakh crore
India’s gross goods and services tax (GST) collections rose 9.1% year-on-year in September to Rs.1.89 lakh crore, the finance ministry data showed on Wednesday.
The September numbers correspond to transactions carried out in August and reported last month. It has nothing to do with post-GST rate cut performance.
The mop-up compares with Rs.1.73 lakh crore collected in the same month last year.
“The increase in gross GST collections to Rs.1.89 lac Crores for the month indicates that there has not been any significant slowdown in economic activity in anticipation of the GST rate cuts during the month of August 2025 as this data relates to transactions in August 2025," MS Mani, Partner, Deloitte India, said.
In August, GST collections grew 6.5% year-on-year to Rs.1.86 lakh crore.
For the April–September 2025 period, gross collections reached Rs.12.1 lakh crore, up 9.8% from Rs.11.0 lakh crore a year ago, accounting for around 55% of full-year collections in FY24.
Net GST revenues during the six months stood at Rs.10.4 lakh crore, marking an 8.8% increase from the corresponding period last year.
Integrated GST (IGST) collections crossed Rs.1 lakh crore for the second time, hitting Rs.1,01,883 crore, the highest to date, surpassing the previous peak of Rs.1,01,075 crore recorded in January 2025.
Cess collections, however, fell to Rs.11,652 crore, the lowest since April 2025. Data for the April–September period showed a gradual decline in cess, from Rs.13,451 crore in April to Rs.11,652 crore in September.
The ministry noted that festive season GST revenues in August and September together totalled Rs.3.8 lakh crore, up 7.8% from the same period last year.
India’s Goods and Services Tax (GST) system underwent a major overhaul earlier this month, as the GST Council approved a simplification of the tax structure.
The previous four tax slabs were reduced to two primary rates of 5% and 18% for most goods and services, while ultra-luxury and demerit items are now taxed at 40%. The move, which became effective from Sept 22, eliminates the earlier 12% and 28% slabs, aiming to boost transparency, ease compliance for businesses, and provide relief to consumers.
Officials have said the reform is expected to streamline tax administration and support economic growth by encouraging consumption and investment.
