Government makes a big splash on the back of rate cuts, GST collection reaches ₹1.89 lakh crore in September.

GST Collection: GST collections in September 2025 increased to ₹1.89 lakh crore, a growth of 9.1% year-on-year and 1.5% month-on-month. Changes in GST rates and exemptions on 375 items boosted sales and brought in a flood of money to the government treasury. Gross domestic revenue, import taxes, and refunds also increased, indicating that the GST 2.0 reforms and rationalized rates have stabilized the Indian economy and boosted investment.

GST Collection: Goods and Services Tax (GST) rate cuts have brought in a flood of money to the government treasury. Government data showed on Wednesday that GST collections increased by 9% to ₹1.89 lakh crore in September 2025. The reduction in GST rates and exemptions on various items led to increased sales, positively impacting GST collections. As a result, GST collections increased by 9% in September.

Gross Growth in GST Collections on an Annual and Monthly Basis

According to data released by the government, GST collections increased by 9.1% on an annual basis and 1.5% on a monthly basis. Gross GST collections in September 2024 were ₹1.73 lakh crore, while in August 2025, they were ₹1.86 lakh crore.

Impact of GST Rate Changes

As a result of the GST rate changes effective September 22, 2025, prices of 375 goods and services have decreased. These include kitchenware, electronic equipment, pharmaceuticals, and motor vehicles. This move increased consumer demand and led to a surge in GST collections.

Gross domestic revenue increased by 6.8% to ₹1.36 lakh crore in September 2025, while import taxes increased by 15.6% to ₹52,492 crore. Additionally, GST refunds also recorded a 40.1% increase year-on-year to ₹28,657 crore.

Net GST collections stood at ₹1.60 crore

Net GST collections in September 2025 were ₹1.60 lakh crore, an increase of nearly 5% year-on-year. This increase in GST collections indicates that economic activity did not significantly decline despite expectations of a GST rate cut.

What Experts Say

Deloitte India Partner MS Mani said that the increase in gross GST collections to ₹1.89 lakh crore in September clearly demonstrates that expectations of a GST rate cut in August did not slow economic transactions. He also noted that the average monthly GST collections during FY 2025-26 are expected to be close to ₹2 lakh crore per month. This is a significant increase compared to the average monthly collections of ₹1.8 lakh crore in the previous FY 2024-25.

Increased Consumer Demand

The GST 2.0 reform and exemptions on various goods have boosted consumer demand, resulting in a flood of funds for the government treasury. This will not only boost revenue collection but also stimulate stability and economic activity in the Indian economy.

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