GST revenues rise 9.1% in September: Collections hit Rs 1.89 lakh crore; outpace August surge

India’s goods and services tax (GST) revenues rose 9.1% year-on-year to Rs 1.89 lakh crore in September, Reuters reported citing government data.In August, Gross GST collections had stood at Rs 1.86 lakh crore, reflecting a 6.5% rise from Rs 1.75 lakh crore in the same month last year. Net collections for August were Rs 1.67 lakh crore, up 10.7% year-on-year.In July, net revenues had moderated to Rs 1.68 lakh crore, largely due to a higher volume of refunds issued during the month.Abhishek Jain, Indirect Tax Head&Partner, KPMG says “It is heartening to see consistent growth in GST collections, especially when some stagnancy was expected due to postponed sales in the second fortnight of August following the announcement on GST rate rationalisation by PM on Aug 15. Another significant aspect is that this growth has continued despite the discontinuation of GST revenue from online money gaming businesses.”Neet revenue standing at Rs 1.60 lakh crore in September 2025, recording a 5 per cent year-on-year growth, according to government data cited by PTI.The month saw gross domestic revenue rise 6.8 per cent to Rs 1.36 lakh crore, while tax from imports surged 15.6 per cent to Rs 52,492 crore. GST refunds also increased sharply, rising 40.1 per cent year-on-year to Rs 28,657 crore.The rise in collections follows the implementation of GST rate rationalisation from September 22, which lowered prices on as many as 375 items, ranging from kitchen staples and electronics to medicines, medical equipment, and automobiles. This has led to a notable surge in consumer demand in the latter part of the month.Deloitte India partner MS Mani noted that the increase in gross GST collections to Rs 1.89 lakh crore indicates that there was no significant slowdown in economic activity ahead of the rate cuts, as much of the data relates to transactions in August. “With these collections, the average monthly collections during FY26 are approaching Rs 2 lakh crore, a marked increase from the FY25 average of Rs 1.8 lakh crore till September,” he said, PTI quoted him as saying.The impact of the surge in consumption from September 22 and the slowdown in demand from September 1-21, 2025, seems to have balanced each other as far as GST revenues are concerned, Tax Connect Advisory partner Vivek Jalan said.However, analysts pointed out that consumption in major manufacturing states—Maharashtra, Gujarat, Tamil Nadu, and Karnataka—was impacted by slower inter-state stock transfers and supply disruptions in the first three weeks of September due to concerns over input tax credit accumulation ahead of the rate reduction. The limited availability of vehicles from September 22 further moderated demand, Tax Connect Advisory partner Vivek Jalan said in a statement quoted PTI.Overall, the combined effect of pre- and post-rate cut consumption appears to have balanced GST revenues for the month, he added.