GST Collections Surpass Rs 2 Lakh Crore Once More, Up 14.7% in September
India’s Goods and Services Tax (GST) collections surpassed the Rs 2 lakh crore mark in September, reaching Rs 2.04 lakh crore, a 14.7% increase from the previous year. This growth was fueled by higher revenues from both domestic transactions and imports. Revenue from domestic transactions rose by 10.1% to Rs 1.38 lakh crore, while GST from imports surged by 25.9% to Rs 65,525 crore.
Breakdown of GST Collections
Gross Integrated GST (IGST) collections rose to Rs 1.20 lakh crore, compared to Rs 1.02 lakh crore in September 2025. Central GST collections were recorded at Rs 37,762 crore, while State GST collections reached Rs 45,363 crore. Notably, total GST refunds decreased by 3% to Rs 27,001 crore from Rs 27,848 crore a year earlier.
Abhishek Jain, indirect tax head and partner at KPMG, remarked on the encouraging growth in GST collections despite global economic challenges. He pointed out the significant rise in import GST, suggesting a need for further analysis to determine the nature of these imports—whether they are raw materials or finished goods. Jain emphasized the importance of understanding these trends to assess the strength of domestic manufacturing and the potential need for initiatives like the Production-Linked Incentive (PLI) scheme.
Net GST Collections
After accounting for refunds, net GST collections saw a substantial increase of 18.1% year-on-year, totaling Rs 1.77 lakh crore in September, up from Rs 1.50 lakh crore in September 2025. Net domestic GST revenue grew by 13.5% to Rs 1.24 lakh crore, while net revenue from customs-related GST jumped by 30.8% to Rs 52,028 crore.
The figures for September contributed to a robust GST collection tally for the first half of the financial year. From April to September, gross GST collections rose by 11.6% to Rs 12.46 lakh crore, compared to Rs 11.17 lakh crore during the same period in the previous year. Net GST collections for this period increased by 10.4% to Rs 10.66 lakh crore from Rs 9.65 lakh crore a year earlier.
State Contributions
Maharashtra led the states in GST contributions, generating Rs 29,986 crore in September, reflecting a 15% year-on-year increase. Karnataka’s collections rose by 16% to Rs 13,884 crore, while Gujarat recorded Rs 12,222 crore, up 17%. Uttar Pradesh and Telangana both experienced an 18% growth in GST revenue, with Uttar Pradesh collecting Rs 8,882 crore and Telangana recording Rs 5,327 crore.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
