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India GST Collections Rise 14.7 Percent to Rs 2.04 Lakh Crore in September
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India GST Collections Rise 14.7 Percent to Rs 2.04 Lakh Crore in September

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Business Standard reported that industry expectations for the next phase of GST reforms include simplifying processes and improving the ease of compliance for businesses.

India’s gross Goods and Services Tax collections increased 14.7 percent year on year to Rs 2,03,521 crore in September 2026, according to provisional government data released on October 1. The latest figures show that monthly GST collections remained above the Rs 2 lakh crore mark for the third consecutive month.

The September collection was higher than the Rs 1,77,365 crore collected in the same month of the previous year. The growth in GST revenue was supported by an increase in both domestic transactions and tax collected on imports. However, import related GST revenue recorded a considerably faster rate of growth compared with domestic GST collections.

Gross domestic GST revenue stood at Rs 1,37,996 crore in September, representing a 10.1 percent increase from Rs 1,25,334 crore recorded in September 2025. GST revenue from imports rose 25.9 percent year on year to Rs 65,525 crore, compared with Rs 52,031 crore in the corresponding month last year.

The figures indicate that import related collections made a significant contribution to the overall increase in GST revenue during the month. The faster growth in import GST was also highlighted in economic analysis of the latest collection data.

The government's September data also showed the breakup of the major GST components. Central Goods and Services Tax collections stood at Rs 37,762 crore, while State Goods and Services Tax collections amounted to Rs 45,363 crore. Integrated Goods and Services Tax collections, including revenue associated with domestic transactions and imports, stood at Rs 1,20,396 crore.

Net GST revenue also recorded stronger growth during September. After accounting for refunds, net GST collections increased 18.1 percent year on year to Rs 1,76,520 crore, compared with Rs 1,49,517 crore in September 2025. The faster growth in net revenue was partly associated with lower refunds during the month.

Total GST refunds during September amounted to Rs 27,001 crore, which was around 3 percent lower than the Rs 27,848 crore recorded a year earlier. Domestic refunds declined 13.5 percent to Rs 13,504 crore, while export related GST refunds through the ICEGATE system increased 10.2 percent to Rs 13,497 crore.

After adjusting for refunds, net domestic GST revenue increased 13.5 percent to Rs 1,24,491 crore. Net revenue from customs related GST rose 30.8 percent to Rs 52,028 crore during the month.

The September figures are also significant in the context of GST collections during the first half of the current financial year. Between April and September 2026, India's gross GST collections rose 11.6 percent to Rs 12.46 lakh crore, compared with Rs 11.17 lakh crore during the corresponding period of the previous financial year.

Net GST revenue during the April to September period increased 10.4 percent to Rs 10.66 lakh crore from Rs 9.65 lakh crore in the same period a year earlier. The figures provide a broader view of GST revenue performance beyond the monthly September collection.

State wise data also showed differences in the growth of GST collections across major states. Maharashtra recorded GST revenue of Rs 29,986 crore in September, registering 15 percent growth compared with the previous year. Karnataka collected Rs 13,884 crore, up 16 percent, while Gujarat recorded Rs 12,222 crore, representing 17 percent growth.

Uttar Pradesh recorded an 18 percent increase in GST revenue to Rs 8,882 crore, while Telangana also reported 18 percent growth, with collections reaching Rs 5,327 crore. These figures indicate that several major states recorded double digit year on year growth during September.

GST collections are closely watched as an indicator of tax revenue trends and the formalisation of economic transactions. Higher collections can reflect several factors, including changes in consumption and business activity, imports, tax compliance and administrative measures. Monthly GST figures alone, however, do not provide a complete assessment of overall economic performance.

The September data also comes amid continuing discussions about the next phase of GST reforms. Industry representatives have raised issues related to compliance procedures, input tax credit, refunds and dispute resolution. Business Standard reported that industry expectations for the next phase of GST reforms include simplifying processes and improving the ease of compliance for businesses.

The latest collection numbers therefore provide a mixed picture of the revenue structure. Domestic GST collections continued to grow, while import related revenue increased at a significantly faster pace. At the same time, lower refunds contributed to the stronger growth recorded in net GST revenue.

The September GST collection of Rs 2,03,521 crore also marks the third month in the current financial year in which gross collections crossed the Rs 2 lakh crore threshold. Collections had previously crossed that level in April and July, according to reported government data.

For policymakers and businesses, the trend will remain important as the financial year progresses. Future monthly collections will provide additional information on whether the current pace of revenue growth continues across domestic transactions, imports and different states.

Overall, the September 2026 GST data shows a 14.7 percent year on year increase in gross collections to Rs 2,03,521 crore. Net revenue after refunds rose at a faster rate of 18.1 percent to Rs 1,76,520 crore. Domestic revenue increased by 10.1 percent, while import related collections rose 25.9 percent, making both components important contributors to the latest GST revenue figures.

For policymakers and businesses, the trend will remain important as the financial year progresses.