GST mop-up rises 14.7% to over ₹2 lakh crore in September on import-linked growth

Gross GST collections rose 14.7% year-on-year to over ₹2 lakh crore in September, aided by domestic consumption and strong growth in import-linked tax mop-up, according to provisional data released by the finance ministry.

Gross GST revenue stood at ₹2,03,521 crore in September 2026, compared with ₹1,77,365 crore in the same month last year.

This is the third month in the current fiscal year when GST collections have crossed ₹2 lakh crore mark. The GST revenues had earlier touched record highs of about ₹2.43 lakh crore and over ₹2.11 lakh crore in April and July, respectively.

Gross domestic revenue grew 10.1% to ₹1,37,996 crore, while gross import revenue jumped 25.9% to ₹65,525 crore.

EY India Tax Partner Saurabh Agarwal said the growth of close to 15% in gross GST collections showed that domestic demand continued to do well despite global pressures.

Assam, Manipur, Arunachal Pradesh and Nagaland have done considerable growth, which showcases holistic development across the country, Agarwal added.

Imports drive GST buoyancy

Grant Thornton Bharat Partner and Tax Controversy Management Leader Manoj Mishra said the sharp rise in import-linked GST, compared with domestic GST growth, reflected the impact of currency movements, commodity prices and import dynamics.

Rupee depreciation has increased the landed rupee value of dollar-denominated imports, while elevated crude and commodity prices have pushed up the overall import bill and, consequently, the GST base, Mishra said.

He said stronger imports of higher-value categories such as electronics, machinery, gold and fertilisers had also supported import-linked collections.

"While this is providing a significant near-term boost to GST revenues, the trajectory of global commodity prices, the rupee and import volumes will be important variables in determining how much of this buoyancy can be sustained in the months ahead," Mishra added.

Pratik Jain, Partner at Price Waterhouse & Co LLP, said GST collections remained strong, but the disparity between domestic and import-linked growth suggested that a meaningful part of the headline buoyancy was coming from imports.

"GST collections remain strong, but 10% growth in domestic revenues vis-a-vis a 26% growth in GST from imports suggests that a meaningful part of the headline buoyancy is coming from imports," Jain said.

Refunds fall

Domestic refunds fell 13.5% year-on-year to ₹13,504 crore in September. Total refunds declined 3% to ₹27,001 crore, according to the data.

Tax Connect Advisory Services LLP Partner Vivek Jalan said the decline in refunds could indicate that departments were holding back disbursements, a trend that needed to be watched to ensure liquidity for businesses.

"Even after a drastic reduction in GST rates under GST 2.0, collections have remained resilient. It must also be noted that part of the September 2026 growth reflects a low base effect, as September 2025 turnover was subdued due to the gap between the announcement and notification of GST 2.0," he said.

Jalan said the GST Council could now focus on next level reforms, including allowing refunds of input services under the inverted duty structure, streamlining registration for large taxpayers across states and reducing GST rates on autism centres.

The GST Council, comprising the Centre and state finance ministers, is scheduled to meet on October 7.

Net GST revenue rises 18.1%

After accounting for refunds, total net GST revenue increased 18.1% to ₹1,76,520 crore in September, from ₹1,49,517 crore a year ago.

Net domestic revenue grew 13.5% to ₹1,24,491 crore, while net revenue from customs-related GST rose 30.8% to ₹52,028 crore.

Deloitte India Partner and Indirect Tax Leader Mahesh Jaising said industry would seek further measures from the GST Council to improve the functioning of the tax system.

Jaising said the key asks of the industry from the GST Council are rationalising ITC restrictions and addressing procedural issues that result in legitimate credits being blocked, resolving inverted duty structures and simplifying refund processes to improve business cash flows.

He also called for process rationalisation to make it easier for businesses to claim legitimate credits, obtain refunds, comply with the law and resolve disputes.

UP, Gujarat, Karnataka, Telangana post strong growth

The state-wise data showed GST revenue, excluding tax on imports, rose 18% in Uttar Pradesh, 17% in Gujarat, 16% in Karnataka and 18% in Telangana in September.

Maharashtra, the largest contributor among states, recorded 15% growth.

Assam recorded 88% growth, while Manipur and Arunachal Pradesh registered increases of 145% and 46%, respectively. Nagaland's collections rose 39%.

Some states, however, recorded declines, including Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Sikkim, Meghalaya, Tamil Nadu and Puducherry.

For April-September, gross GST collections rose 11.6% to ₹12.46 lakh crore from ₹11.17 lakh crore in the year-ago period.

Net GST revenue during the period increased 10.4% to ₹10.66 lakh crore.