India’s Goods and Services Tax (GST) collections reached ₹1.89 lakh crore in September 2025, marking a 9.1% increase compared to the same month last year. The collections were also over 1.5% higher than the previous month, reflecting the impact of recent tax rate changes.
In September 2024, GST collections stood at ₹1.73 lakh crore, and the figure was ₹1.86 lakh crore last month, according to data released by the government. The near double-digit growth comes after the implementation of GST 2.0 reforms, which included rate rationalization that took effect on September 22, 2025. These reforms made 375 items, from kitchen staples and electronics to medicines and automobiles, cheaper, boosting demand in the latter half of the month.
The gross domestic revenue grew by 6.8% to ₹1.36 lakh crore, while tax from imports rose by 15.6% to ₹52,492 crore in September 2025.
However, GST refunds also saw a significant rise, climbing by 40.1% year-on-year to ₹28,657 crore.
Net GST revenue for the month was ₹1.60 lakh crore, reflecting a 5% year-on-year growth.
Despite the positive growth, the GST Council did not address the issue of compensating states for potential revenue losses, with states like Telangana and Kerala raising concerns.
