Gross GST collections rose 14.7 per cent in September to over Rs 2.03 lakh crore, aided by domestic consumption and strong growth in revenues from imports, according to government data.
Gross GST collections from domestic activities rose 10.1 per cent to about Rs 1.38 lakh crore, while revenues from imports were up 26 per cent to Rs 65,525 crore, the data showed.
Goods and Services Tax (GST) refunds, however, slowed to Rs 27,001 crore in September, a decline of 3 per cent year on year.
After adjusting for refunds, net GST collections rose 18.1 per cent to over Rs 1.76 lakh crore in September.
Third month of Rs 2 lakh crore-plus collections
This is the third month in the current fiscal year when GST collections have crossed Rs 2 lakh crore. Earlier in April and July, the GST revenues had touched record highs of about Rs 2.43 lakh crore and over Rs 2.11 lakh crore, respectively.
During the first half of the fiscal (April-September), gross GST collections grew 11.6 per cent to over Rs 12.46 lakh crore. Net collections rose 10.4 per cent to over Rs 10.66 lakh crore.
Experts point to domestic demand, imports
EY India Tax Partner Saurabh Agarwal, said the Rs 2 lakh crore mark in gross GST collections, with growth of close to 15 per cent, shows that domestic demand continues to do well in spite of global pressure. The growth in the tax mop-up is broad based with Uttar Pradesh, Telangana, Gujarat and Karnataka each up 16 per cent to 18 per cent. Assam, Manipur, Arunachal Pradesh and Nagaland have done considerable growth, which showcases holistic development across the country, Agarwal added.
Grant Thornton Bharat Partner and Tax Controversy Management Leader, Manoj Mishra said the sharp 25.9 per cent growth in import-linked GST in September, compared with around 10 per cent growth in domestic GST, reflects a combination of currency, commodity prices and import dynamics. Rupee depreciation has increased the landed rupee value of dollar-denominated imports, while elevated crude and commodity prices have pushed up the overall import bill and, consequently, the GST base, Mishra said.
"Stronger imports of higher-value categories such as electronics, machinery, gold and fertilisers have further supported the buoyancy in import-linked collections. While this is providing a significant near-term boost to GST revenues, the trajectory of global commodity prices, the rupee and import volumes will be important variables in determining how much of this buoyancy can be sustained in the months ahead," Mishra added.
GST 2.0 and refund trends in focus
Tax Connect Advisory Services LLP, Partner, Vivek Jalan said the growth in GST collections highlights the strength of manufacturing and consumption, but a contraction in refunds suggest that departments may be holding back disbursements — a trend that warrants close monitoring to ensure liquidity for businesses.
"Even after a drastic reduction in GST rates under GST 2.0, collections have remained resilient. It must also be noted that part of the September 2026 growth reflects a low base effect, as September 2025 turnover was subdued due to the gap between the announcement and notification of GST 2.0," Jalan said.
While the rate rationalisation under GST 2.0 was announced on September 3, 2025, it was effective from September 22, 2025. This resulted in customers holding back purchases till the rate reduction and resultant price cuts took effect.
Jalan also said that the GST Council can now focus on the next level of reforms — including allowing refunds of input services under the inverted duty structure, streamlining registration for large taxpayers across states, and showing compassion by reducing GST rates on autism centres.
GST Council to meet on October 7
The GST Council, comprising Centre and state finance ministers, is scheduled to meet on October 7.
Deloitte India, Partner and Indirect Tax Leader, Mahesh Jaising said the key asks of the industry from the GST Council are rationalising ITC restrictions and addressing procedural issues that result in legitimate credits being blocked, resolving inverted duty structures and simplifying refund processes to improve business cash flows along with process rationalisation— making it easier for businesses to claim legitimate credits, obtain refunds, comply with the law and resolve disputes.
Price Waterhouse & Co LLP, Partner, Pratik Jain said GST collections remain strong, but 10 per cent growth in domestic revenues vis-a-vis a 26 per cent growth in GST from imports suggests that a meaningful part of the headline buoyancy is coming from imports.