Gross GST Mop-up Increases To Rs 1.89 Lakh Crore Year-on-Year In September

New Delhi: India’s gross goods and services tax (GST) mop-up rose by 9.1 per cent year-on-year in September to Rs 1.89 lakh crore from 1.73 lakh crore collected in the same month last year. While September’s collections were slightly higher than August’s Rs 1.86 lakh crore, they remained below July’s collection, the government said on Wednesday.

However, it is noted that the September numbers correspond to transactions carried out in August and reported last month and it has nothing to do with post-rate cut performance.

As for the official statement, the GST collections were 9.1 per cent higher than the same month a year ago and over 1.5 per cent higher than the previous month. “The collections were Rs 1.73 lakh crore in September 2024. Last month, the collection was Rs 1.86 lakh crore,” the statement said.

The next-gen GST reforms, which came into force on September 22, have been hardly reflected in the collections. Prices of as many as 375 items, including kitchen staples to electronics, medicines and equipment to automobiles, got cheaper from September 22. Nevertheless, the month has seen increased demand due to rate cuts.

As per the data, during the September month, the gross domestic revenue grew 6.8 per cent to Rs 1.36 lakh crore, while tax from imports rose 15.6 per cent to Rs 52,492 crore in September. “However, GST refunds also rose by a steep 40.1 per cent year-on-year to Rs 28,657 crore. Net GST revenue stood at Rs 1.60 lakh crore in September 2025, recording 5 per cent year-on-year growth,” the data showed.

Deloitte India partner MS Mani said that the increase in gross GST collections to Rs 1.89 lakh crore for the month indicates that there has not been any significant slowdown in economic activity in anticipation of the GST rate cuts during August, as this data relates to transactions in August.

With these collections for September, he said, the average monthly collections during FY26 are just a little short of Rs 2 lakh crore a month, marking a significant increase compared to FY25 when the average monthly collections till September 2024 were Rs 1.8 lakh crore.

Tax Connect Advisory partner Vivek Jalan also said that the impact of the surge in consumption from September 22 and the slowdown in demand from September 1-21, 2025, seemed to have balanced each other as far as GST revenues are concerned.

“What could not balance out is the consumption in the manufacturing states such as Maharashtra, Gujarat, Tamil Nadu & Karnataka due to the slowdown in inter-state stock transfers and supplies till September 21 due to fears of ITC accumulation on rate reduction and the continued slowdown due to scarcity of vehicles from September 22, 2025,” he said.