New Delhi, Oct 1 (PTI) GST collections clocked near double-digit growth to amass Rs 1.89 lakh crore in September -- a month in which the reduced tax rates came into effect in the second half.

The GST collections were 9.1 per cent higher than the same month a year ago and over 1.5 per cent higher than the previous month.

Gross Goods and Services Tax (GST) mop-up was Rs 1.73 lakh crore in September 2024. Last month, the collection was Rs 1.86 lakh crore, as per government data released on Wednesday.

It is to be noted that GST 2.0 reforms in the form of rate rationalisation, which came into force on September 22, have been reflected in the collections.

Prices of as many as 375 items, including kitchen staples to electronics, from medicines and equipment to automobiles, got cheaper from September 22. The month has seen increased demand due to rate cuts.

During the month, the gross domestic revenue grew 6.8 per cent to Rs 1.36 lakh crore, while tax from imports rose 15.6 per cent to Rs 52,492 crore in September.

However, GST refunds also rose by a steep 40.1 per cent year-on-year to Rs 28,657 crore.

Net GST revenue stood at Rs 1.60 lakh crore in September 2025, recording 5 per cent year-on-year growth.

Deloitte India partner MS Mani said the increase in gross GST collections to Rs 1.89 lakh crore for the month indicates that there has not been any significant slowdown in economic activity in anticipation of the GST rate cuts during August, as this data relates to transactions in August.

With these collections for September, he said, the average monthly collections during FY26 are just a little short of Rs 2 lakh crore a month, marking a significant increase compared to FY25 when the average monthly collections till September 2024 were Rs 1.8 lakh crore.

The impact of the surge in consumption from September 22 and the slowdown in demand from September 1-21, 2025, seems to have balanced each other as far as GST revenues are concerned, Tax Connect Advisory partner Vivek Jalan said.

However, he said, what could not balance out is the consumption in the manufacturing states (Maharashtra, Gujarat, Tamil Nadu & Karnataka) due to the slowdown in inter-state stock transfers and supplies till September 21 due to fears of ITC accumulation on rate reduction and the continued slowdown due to scarcity of vehicles from September 22, 2025. PTI DP DP SHW

GST collections rose to Rs 1.89 lakh crore as rate rationalisation and timing effects reshaped receipts and refunds. GST receipts rose to Rs 1.89 lakh crore in September, with gross collections reflecting the September 22 rate rationalisation that reduced rates on 375 items. Gross domestic tax and import tax grew, while GST refunds increased sharply, yielding net GST revenue of Rs 1.60 lakh crore. The timing of rate cuts produced a post cut surge in consumption that offset pre cut slowdown, and concerns about input tax credit accumulation led to reduced inter state transfers in major manufacturing states.