GST Momentum Holds Strong: India Nets Rs 1.89 Trillion In September, Up 9.1% Year-On-Year

India’s Goods and Services Tax (GST) collections for September 2025 have reached Rs 1.89 trillion, marking a 9.1 percent year-on-year increase and reinforcing the country’s fiscal buoyancy amid steady consumption and compliance improvements. The data, released by the Ministry of Finance on October 1, reflects robust performance across domestic transactions and import-linked revenues.

Key Highlights From The September Collection

- Central GST stood at Rs 34,000 crore, while State GST contributed Rs 43,000 crore  
- Integrated GST collections reached Rs 1.01 trillion, including Rs 48,000 crore from imports  
- Cess collections totaled Rs 11,000 crore, with Rs 900 crore from import duties  
- Revenues from domestic transactions (including services) grew by 13 percent compared to September 2024  
- The monthly average GST collection for FY26 now stands at Rs 1.87 trillion, indicating sustained fiscal momentum

Sectoral And Regional Trends

- Manufacturing and services sectors led the growth, supported by festive season inventory buildup and retail demand  
- States such as Maharashtra, Tamil Nadu, Gujarat, and Karnataka posted double-digit growth in collections  
- Improved e-invoicing compliance and real-time data reconciliation contributed to reduced tax evasion and higher net collections  
- The government’s crackdown on fake invoicing and input tax credit misuse has further tightened revenue leakage

Looking Ahead

- Analysts expect October collections to breach Rs 2 trillion, driven by festive sales and pre-Diwali procurement cycles  
- The Centre is likely to maintain its fiscal glide path, with GST buoyancy supporting infrastructure and welfare spending  
- Policy focus remains on expanding the GST base, simplifying returns, and integrating AI-driven audit mechanisms

Sources: Ministry of Finance India, Economic Times Policy Desk, Business Standard Tax Tracker, Mint Revenue Insights, Reuters India Fiscal Updates