The gross goods and services tax (GST) collections came in at Rs 1.89 lakh crore in September ( August transactions), up 9.1% year. The mop-up is decent as by August, there was anticipation of large-scale reduction in GST rates, which might have led to deferment of purchases.
Why net collections grew slower
However, net GST receipts grew by 5% to Rs 1.6 lakh crore in September, as refunds rose by 40%.
The GST collections reached a record high of Rs 2.37 lakh crore in April 2025, before decreasing to Rs 2.01 lakh crore in May, and then further moderating to Rs 1.85 lakh crore in June.
“While a short-term slowdown was expected as consumers deferred purchases ahead of the new GST rates effective from September 22, the impact was partially offset by businesses strategically adjusting prices and passing on benefits early,” said Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat.
This not only accelerated spending but also enabled suppliers to optimise credit utilisation and manage working capital efficiently, ensuring robust inflows and marking the ninth consecutive month with revenues above INR 1.8 lakh crore, Mishra said.
From September 22, the tax rate on a large number of items was cut as part of the GST reforms.
The gross collection in September includes central GST receipts of Rs 33,645 crore, state GST receipts of Rs 41,836 crore, and Integrated GST (IGST) receipts of Rs 1,01,883 crore. Cess collection stood at Rs 11,941 crore.
“Both domestic and export refunds have been growing at a healthy clip, indicating stabilisation of the refund processes and bringing relief to businesses,“ said MS Mani, Partner, Deloitte India.
“The trend of large manufacturing states like Maharashtra, Gujarat, Tamil Nadu, and Karnataka growing their GST revenues in single digits has been observed in several months this year.. Understanding the reasons for the same will require sectoral data and their growth, so that issues with specific sectors can be addressed, leading to higher GST revenues in these states,” Mani added.
Future outlook: Festive demand vs. rate impact
Going forward, while the impact of rate rationalization might temper the increase, the festive consumption will ensure collections maintain a positive trajectory, said Saurabh Agarwal, Tax Partner, EY India.
India’s domestic resilience is proving to be a powerful shield against global headwinds, keeping our long-term growth story highly encouraging, he added.