GST collections rise 14.7% to over ₹2.03 lakh crore in September

Gross Goods and Services Tax (GST) collections rose 14.7% year-on-year to over ₹2.03 lakh crore in September, supported by higher revenues from both domestic transactions and imports.

The latest collection data showed that GST revenues continued to maintain double-digit growth, with collections during the first half of the fiscal year also registering a strong increase.

Domestic GST revenue rises 10.1%

Gross GST collections from domestic activities, including imports, increased 10.1% to around ₹1.38 lakh crore in September.

Revenue from imports rose at a faster pace, increasing 26% year-on-year to ₹65,525 crore during the month.

GST refunds, however, declined 3% year-on-year to ₹27,001 crore in September. After accounting for refunds, net GST collections rose 18.1% year-on-year to over ₹1.76 lakh crore.

Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat, said, "September GST collections are encouraging, but the headline INR 2.04 lakh crore is only one part of the story. Gross collections grew 14.7% year-on-year, with domestic GST revenue rising 10.1%, while import-linked GST grew a much sharper 25.9%. The continued strength in the import component is noteworthy, particularly against the backdrop of elevated energy prices, geopolitical disruptions and higher landed costs for globally traded commodities. It therefore provides an important boost to collections but should not be interpreted entirely as a proxy for stronger domestic consumption."

Net GST revenue grew a stronger 18.1%, although the 13.5% decline in domestic refunds has also supported this outcome. The state-level performance is encouragingly broad-based, with several major states like Maharashtra, Karnataka, Gujarat, Telangana registering 15–18% growth, though some divergence remains across states, according Mishra.

H1 gross GST collections cross ₹12.46 lakh crore

During the first half of the fiscal year, from April to September, gross GST collections increased 11.6% to more than ₹12.46 lakh crore.

Net GST collections during the six-month period rose 10.4% to over ₹10.66 lakh crore after adjusting for refunds.

The September collection data comes amid continued growth in GST revenues, with higher domestic activity and import-linked collections contributing to the overall increase.

Mishra also said that the forthcoming 57th GST Council meeting holds significance. "If the Council can translate GST 2.0 into meaningful process reforms around ITC, registration, refunds and compliance, it could strengthen the quality of revenue growth by reducing friction for compliant businesses and improving tax efficiency. The next phase of GST, therefore, is less about headline rate changes and more about making the system work better and that could provide an important foundation for sustaining the current momentum," he added.