India's gross Goods and Services Tax collections rose 14.7% year-on-year to Rs 2,03,521 crore in September, remaining above the Rs 2 lakh crore mark for the third month in the current financial year, provisional government data released on Thursday showed. The September mop-up was significantly higher than the Rs 1,77,365 crore collected in the corresponding month last year. The latest numbers were supported by growth in both domestic transactions and imports, though import-linked GST increased at a much faster pace.
Imports drive growth
Gross GST revenue from domestic transactions increased 10.1% to Rs 1,37,996 crore in September from about Rs 1.25 lakh crore in the corresponding month of 2025. Collections from imports, meanwhile, surged 25.9% to Rs 65,525 crore from Rs 52,031 crore a year earlier.
The divergence between the two components indicates that imports contributed substantially to the acceleration in headline GST growth during September. Import-linked collections can be affected by several factors, including import volumes, commodity prices and changes in the rupee value of imported goods. The September collections relate largely to economic activity and transactions undertaken during August.
Net revenue jumps 18.1%
After adjusting for refunds, net GST revenue stood at Rs 1,76,520 crore during September, an increase of 18.1% from Rs 1,49,517 crore in the same month last year. Net domestic GST revenue increased 13.5% to Rs 1,24,491 crore, while net customs-related GST revenue climbed 30.8% to Rs 52,028 crore. The stronger growth in net collections partly reflected a decline in refunds. Total refunds during September fell 3% year-on-year to Rs 27,001 crore from Rs 27,848 crore. Domestic refunds declined 13.5% to Rs 13,504 crore. Import-related refunds, on the other hand, increased 10.2% to Rs 13,497 crore.
IGST crosses Rs 1.2 lakh crore
The composition of September's gross collections showed Integrated GST continuing to account for the largest share of revenue. Gross IGST collections stood at more than Rs 1.20 lakh crore during the month. Central GST collections were Rs 37,762 crore, while State GST revenue stood at Rs 45,363 crore.
The GST figures are provisional and can undergo marginal revision when the data is finalised. September was the third month of the current financial year in which gross GST revenue exceeded Rs 2 lakh crore. Collections had reached a record of about Rs 2.43 lakh crore in April and crossed Rs 2.11 lakh crore in July.
First-half collection at Rs 12.46 lakh crore
Cumulative gross GST revenue for April-September 2026 stood at Rs 12.46 lakh crore, an increase of 11.6% from Rs 11.17 lakh crore collected during the corresponding six months of the previous financial year.
Net GST revenue for the first half increased 10.4% to Rs 10.66 lakh crore from Rs 9.65 lakh crore a year earlier. The cumulative figures also underline the growing contribution from imports. Gross GST revenue from imports increased 27.1% during April-September to Rs 3.72 lakh crore.
Domestic gross GST collections grew at a more moderate 6.1% to Rs 8.74 lakh crore during the same period. The difference is significant while assessing the underlying numbers, since the overall 11.6% first-half growth reflects a combination of domestic economic activity and a much sharper rise in taxes collected on imported goods.
Maharashtra leads states
Among states, Maharashtra remained the largest contributor, recording GST revenue of Rs 29,986 crore in September, up 15% from the corresponding month last year. Karnataka's collections increased 16% to Rs 13,884 crore, while Gujarat recorded 17% growth to Rs 12,222 crore. Uttar Pradesh's collections rose 18% to Rs 8,882 crore. Telangana reported an 18% increase to Rs 5,327 crore, while Delhi's collections grew 12% to Rs 6,354 crore.
Assam registered a particularly sharp increase, with collections rising 88% year-on-year to Rs 2,415 crore. Several states and Union Territories, however, recorded declines during the month, underlining differences in regional revenue trends.
Council meeting ahead
The latest revenue numbers come days before the GST Council is scheduled to meet on October 7. The Council, comprising the Union finance minister and representatives of states and Union Territories, is expected to consider further changes to the indirect tax framework.
Industry has continued to seek simplification of procedures relating to input tax credit, refunds, registrations and inverted duty structures. The September data provides the Council with a relatively strong revenue backdrop. At the same time, the significantly faster growth in import-linked receipts compared with domestic collections means the headline 14.7% increase needs to be read alongside the composition of the revenue.
With gross collections above Rs 2 lakh crore for a third month this financial year and first-half revenue at Rs 12.46 lakh crore, GST receipts have remained robust. The trajectory of domestic collections, imports and refunds will determine whether that momentum is sustained through the second half of 2026-27.