GST revenue in September jumps 14.7%, remains above Rs 2 lakh cr mark for third consecutive month

New Delhi: Revenue collection from the Goods and Services Tax (GST) rose by 14.7 per cent YoY to Rs 2.04 lakh crore in September, remaining above the Rs 2-lakh crore mark for the third consecutive month, as per official data released on Thursday.

There was strong growth in revenue collection from both domestic transactions and imports. Gross GST revenue collection from domestic transactions increased by 10.1 per cent to Rs 1.38 lakh crore in September, while revenue from imports jumped by 25.9 per cent YoY to Rs 65,525 crore during the month under review.

After accounting for refunds, net GST collection in September stood at Rs 1.76 lakh crore, registering a growth of 18.1 per cent over the same month last year.

A sharper increase in revenue from import has led to a jump in its share in overall collection. “The rising share of imports in total GST reaching its highest level yet — was influenced by elevated global commodity prices, a softer rupee increasing landed costs, and higher imports of raw materials and inputs across manufacturing supply chains,” SBI Research said in a note.

Refund outflows were more moderate in September, with total refunds declining slightly compared to last year and domestic refunds falling more sharply, resulting in a stronger net GST position.

GST Council meet on Oct 7 to focus on process reforms

Export-linked refunds, however, picked up pace as outbound shipments showed greater resilience, supported by simplified processing systems and improved coordination between customs and GSTN channels.

“Even after a drastic reduction in GST rates under GST 2.0, collections have remained resilient, with net revenues between September 2025 and September 2026 growing around 7 per cent,” said Vivek Jalan, Partner, Tax Connect Advisory Services.

Jalan noted that strong growth in September revenue was partly due to low base. In September 2025, business turnover was impacted due to the gap between the announcement and notification of GST 2.0.

State-level GST performance showed significant variation, with states like Assam, Maharashtra, Karnataka, Gujarat, Uttar Pradesh, and Telangana reporting strong double digit growth, reflecting active industrial ecosystems and improved enforcement.

In contrast, Tamil Nadu and a few others saw mild contraction, pointing to localised factors such as sectoral slowdown or temporary moderation in taxable activity, SBI Research said.

With the festive season, which typically leads to higher consumption across product categories, likely to continue for the next three months, it is expected that the GST collections would continue to be robust and could lead to the annual targets being exceeded in 2026-27, said MS Mani, Partner, Deloitte India.