The September figure corresponds to transactions carried out in August 2025 and filed last month, meaning it does not reflect the impact of the GST rate cuts implemented on September 22. That impact will only begin to show up in the October numbers.
Strong first-half performance
For the April–September 2025 period, gross GST collections stood at ₹12.1 lakh crore, up 9.8% year-on-year from ₹11.0 lakh crore a year earlier. This already accounts for 55% of full-year FY24 collections, putting FY26 on a firm revenue track.
On a net basis, GST revenues in the first half of FY26 reached ₹10.4 lakh crore, an 8.8% rise compared to the same period last year. Refunds have seen a sharp increase, with ₹28,657 crore issued in September alone, marking a 40.1% growth year-on-year.
September collections: The breakdown
Gross collections: ₹1,89,017 crore
Net collections: ₹1,60,360 crore
Domestic revenues: ₹1,36,525 crore
Import revenues: ₹52,492 crore
Tax components:
CGST – ₹33,645 crore
SGST – ₹41,836 crore
IGST – ₹1,01,883 crore
Cess – ₹11,652 crore
The split highlights that domestic consumption continues to anchor revenues, while import-linked GST inflows reflected proactive festive-season stocking by retailers and e-commerce platforms.
What experts have to say?
MS Mani, Partner, Deloitte India, says, “The increase in gross GST collections to ₹1.89 lakh crore indicates that there has not been any significant slowdown in economic activity in anticipation of the GST rate cuts during August. With these September collections, the average monthly GST mop-up in FY26 is just under ₹2 lakh crore, compared to ₹1.8 lakh crore in FY25. Both domestic and export refunds are growing at a healthy clip, indicating stabilisation of processes and easing pressures for businesses.”
“One concern, however, is that large manufacturing states like Maharashtra, Gujarat, Tamil Nadu, and Karnataka have recorded only single-digit revenue growth in several months this year. Identifying sector-specific bottlenecks will be key to boosting their contribution,” Mani added.
Abhishek Jain, Indirect Tax Head & Partner, KPMG, says, “It is heartening to see consistent growth in GST collections, especially when some stagnancy was expected due to postponed sales in the second half of August after the GST rationalisation announcement on August 15. Importantly, this growth comes despite the discontinuation of GST revenue from online money gaming businesses.”
Saurabh Agarwal, Tax Partner, EY added that “The collection numbers affirm India’s consumption-led resilience. Higher refunds for domestic and export sectors, particularly industries affected by the inverted duty structure, are helping ease working capital blockages. Import GST growth is a reflection of retailers and e-commerce platforms stocking up ahead of festive demand. Despite global headwinds, India’s domestic economy continues to display robust strength.”
Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat assesses that the “September’s collections highlight India’s underlying economic strength, supported by steady consumption and industrial activity. While some slowdown was expected as consumers deferred purchases ahead of the September 22 rate cuts, businesses offset the impact by passing on benefits early and optimising credit utilisation. This is the ninth consecutive month of revenues above ₹1.8 lakh crore, underscoring stability. Looking forward, festive consumption is likely to amplify these trends, with formal revenues set for a further boost.”
Karthik Mani, Partner, Indirect Tax, BDO India feels that the “Net GST collections grew at a slower 5% in September, compared to 10.7% in August, due to a surge in refunds. Gross mop-up remained stable, but the true impact of the September 22 rate cuts will be evident only from October returns onwards. The collections over the next three to four months will show the real extent of the impact.”
Pratik Jain, Partner, Price Waterhouse & Co LLP shares, “Growth of about 7% in domestic GST revenues over September 24 is encouraging, particularly because of the slowdown in demand in the second half of August, in anticipation of rate cuts. A 40% increase in refunds also means that businesses are realising cash faster, both in cases of inverted duty cases and exports. Government will be closely monitoring the collections for the next couple of months now to see the interplay between the impact due to massive rate cuts under GST 2.0 and the extent it enhances the consumption.”
Key trends emerging
- Resilient Domestic Demand: Despite expectations of deferred consumption ahead of rate cuts, domestic GST collections remained steady.
- Rising Refunds: A 40% jump in refunds reflects improved processes and relief for exporters and domestic manufacturers, especially in sectors facing duty inversion.
- State-Wise Divergence: While smaller states like Jammu & Kashmir, Meghalaya, and Bihar reported strong growth, large industrial states such as Maharashtra, Gujarat, Tamil Nadu, and Karnataka showed muted expansion.
- Festive Stocking Impact: The uptick in import-linked GST collections suggests pre-festive stocking by retailers and online platforms.
Outlook: October data in focus
While September numbers reaffirm the economy’s resilience, October’s collections will be crucial, as they will capture:
The impact of GST rate rationalisation (effective from September 22)
Early festive-season demand trends
Shifts in sectoral consumption patterns
For now, with average collections in FY26 tracking close to the ₹2 lakh crore mark, expectations are that GST inflows will maintain a double-digit growth trajectory through the festive quarter, cushioning India’s revenue base against global economic uncertainties.
