GST Collections Rise 9.1% in September
India’s Goods and Services Tax (GST) collections for September 2025 stood at ₹1.89 lakh crore, reflecting a 9.1% year-on-year growth compared to the same month last year. This is the ninth straight month when GST revenues have remained above ₹1.8 lakh crore.
Drivers of Growth
The growth was supported by robust domestic demand, steady imports that boosted IGST, and improved compliance. Refunds, however, rose by nearly 40%, which moderated the growth in net collections. Despite this, the figures suggest a strong revenue trend.
Impact of GST 2.0 Reforms
The government’s GST 2.0 reforms, effective from September 22, 2025, consolidated rates mainly into 5% and 18% brackets, covering more than 90% of goods. The simplified structure is expected to stimulate consumption, especially ahead of the festive season. Early signs show a rise in demand, though some sectors remain cautious.
Economic Significance
The September collection outpaced August’s growth of 6.5%, strengthening fiscal stability. Economists note that sustained growth in collections will help the government manage expenditures while ensuring that tax rationalization does not hurt revenue flows.
