September GST collection increases to ₹1.89 trillion vs ₹1.86 trn in August

India’s gross Goods and Services Tax (GST) collection increased 9.1 per cent year-on-year (Y-o-Y) to over ₹1.89 trillion in September, supported by higher sales after the recent tax rate rationalisation, according to government data.

 

In comparison, GST mop-up in September 2024 stood at ₹1.73 trillion, while collections in August 2025 were at ₹1.86 trillion.

 

Domestic revenue increased 6.8 per cent to ₹1.36 trillion, and GST from imports surged 15.6 per cent to ₹52,492 crore during September. 

“The increase in gross GST collections indicates that there has not been any significant slowdown in economic activity in anticipation of the GST rate cuts during the month of August,” said MS Mani, Partner, Deloitte India.

 

At the same time, refunds rose sharply by 40.1 per cent Y-o-Y to ₹28,657 crore. Consequently, the net GST revenue was reported ₹1.60 trillion, marking a 5 per cent annual growth.  

“Both domestic and export refunds have been growing at a healthy clip indicating stabilisation of the refund processes and bringing relief to businesses," Mani added. 

“The trend of large manufacturing states like Maharashtra, Gujarat, Tamil Nadu , Karnataka growing their GST revenues in single digits has been observed in several months this year," Mani added.

  GST reforms  Prices of nearly 375 items, ranging from daily essentials and medicines to electronics and automobiles, have been reduced under the new structure. 

On September 4, 2025, the Indian government announced a major overhaul of the Goods and Services Tax (GST) system, aimed at simplifying the structure, reducing consumer costs, and improving business compliance. 

 

Effective from September 22, 2025, the new framework consolidated the previous six-tier system into four main slabs, zero per cent, 5 per cent, 18 per cent, and a newly introduced 40 per cent rate for luxury and sin goods. 

 

Essential items such as ultra-high-temperature (UHT) milk, all Indian breads, select life-saving medicines, and individual life and health insurance premiums were brought under the zero per cent GST category. 

 

The 5 per cent rate applies to everyday goods and services, including personal care items like toothpaste and shampoo, dairy products such as butter and ghee, snacks, footwear priced up to ₹2,500, and select textiles. 

 

The standard 18 per cent rate covers a wide range of goods and services, including household appliances such as air conditioners and televisions, as well as automobiles, cars with engine capacities up to 1,200 cc and motorcycles up to 350 cc.

 

Finally, the new 40 per cent slab targets luxury and sin goods, including high-end automobiles, tobacco products, alcoholic beverages, and other premium items.