Gross GST collections in India rose by 14.7% year-on-year to over ₹2 lakh crore in September 2026, driven by growth in both domestic consumption and import-linked tax revenues. The provisional data released by the finance ministry shows that the total gross GST revenue stood at ₹2,03,521 crore in September, compared to ₹1,77,365 crore in the same month last year.
- Gross domestic GST revenue increased by 10.1% to ₹1,37,996 crore.
- Import-linked GST revenue jumped 25.9% to ₹65,525 crore.
- Net GST revenue after refunds rose 18.1% to ₹1,76,520 crore.
- Several states showed strong GST growth, with Assam leading at 88%.
- The GST Council is scheduled to meet on October 7, 2026.
What factors contributed to the rise in GST collections in September 2026?
The increase in GST collections was supported by steady domestic demand and a significant rise in import-linked tax revenues. Experts attribute the growth in import GST to currency depreciation, higher commodity prices, and increased imports of high-value goods such as electronics, machinery, gold, and fertilisers.
According to Saurabh Agarwal, EY India Tax Partner, the nearly 15% growth indicates that domestic demand remains robust despite global economic pressures. Meanwhile, Manoj Mishra from Grant Thornton Bharat highlighted that the rupee's depreciation has increased the rupee value of dollar-denominated imports, pushing up the GST base.
How did domestic and import GST revenues perform individually?
Gross domestic GST revenue rose by 10.1% to ₹1,37,996 crore, reflecting healthy consumption within the country. In contrast, GST revenues from imports grew by 25.9% to ₹65,525 crore, showing a sharper increase due to factors like currency fluctuations and commodity prices.
Pratik Jain from Price Waterhouse & Co LLP noted that the disparity between domestic and import-linked growth suggests that a significant portion of the overall GST revenue increase is driven by imports.
What is the status of GST refunds and net revenue?
Domestic GST refunds declined by 13.5% year-on-year to ₹13,504 crore in September, while total refunds fell 3% to ₹27,001 crore. This reduction in refunds may indicate that tax departments are holding back disbursements, which could affect business liquidity.
After accounting for refunds, the total net GST revenue increased by 18.1% to ₹1,76,520 crore. Net domestic GST revenue grew 13.5% to ₹1,24,491 crore, and net customs-related GST revenue rose 30.8% to ₹52,028 crore.
Which states showed significant GST growth in September 2026?
Several states recorded strong GST revenue growth excluding import taxes. Uttar Pradesh saw an 18% increase, Gujarat 17%, Karnataka 16%, and Telangana 18%. Maharashtra, the largest contributor among states, reported 15% growth.
Notably, Assam experienced an 88% increase, Manipur 145%, Arunachal Pradesh 46%, and Nagaland 39%, indicating broad-based economic development across regions.
However, some states such as Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Sikkim, Meghalaya, Tamil Nadu, and Puducherry recorded declines in GST collections.
What are the implications for the GST Council meeting scheduled on October 7, 2026?
The GST Council, which includes finance ministers from the Centre and states, is expected to discuss further reforms. Experts suggest focusing on improving the tax system by rationalising input tax credit restrictions, resolving inverted duty structures, simplifying refund processes, and streamlining registration for large taxpayers.
Vivek Jalan from Tax Connect Advisory Services LLP emphasized the need to monitor refund disbursements to ensure adequate liquidity for businesses. Mahesh Jaising from Deloitte India called for process rationalisation to help businesses claim legitimate credits and comply with GST regulations more efficiently.
How have GST collections performed in the current fiscal year so far?
For the period from April to September 2026, gross GST collections rose 11.6% to ₹12.46 lakh crore, compared to ₹11.17 lakh crore in the same period last year. Net GST revenue increased by 10.4% to ₹10.66 lakh crore during this timeframe.
Overall, the data indicates that GST collections remain strong, supported by both domestic economic activity and import-related factors. The upcoming GST Council meeting will be crucial in deciding the next steps for tax reforms and addressing challenges faced by businesses.
