GST collection for September rises 9.1% to Rs 1.89 lakh crore

India’s goods and services tax (GST) revenues rose 9.1% year-on-year to Rs 1.89 lakh crore in September, according to government data cited by Reuters.

In August, gross GST collections stood at Rs 1.86 lakh crore, a 6.5% increase from Rs 1.75 lakh crore in August 2024. Net collections in August grew 10.7% to Rs 1.67 lakh crore. In July, net revenues had moderated to Rs 1.68 lakh crore due to higher refunds issued during the month.

For the April–August period, GST revenues totalled Rs 10.04 lakh crore, up 9.9% from Rs 9.13 lakh crore during the same period last year.



New GST reforms
Alongside steady revenue growth, September also marked a landmark reform in India’s indirect tax system. The GST Council approved a rationalisation of the tax structure, cutting the four existing slabs down to two.

The 12% and 28% rates have been scrapped, with only 5% and 18% slabs retained. Items earlier taxed under the discontinued rates will now largely shift to the revised categories, making a range of products cheaper.

The new structure, effective from September 22, 2025, excludes certain products such as pan masala, gutkha, cigarettes, chewing tobacco, zarda, unmanufactured tobacco, and bidi, which will continue under higher rates.

The Council’s decision follows Prime Minister Narendra Modi’s Independence Day announcement of a “Diwali gift” in the form of a GST overhaul. A Group of Ministers reviewed the proposal before its approval at the Council’s meeting on September 3–4.