India’s GST Collections Rise 9.1% to ₹1.89 Lakh Crore in September

India’s gross goods and services tax (GST) collections rose 9.1% year-on-year in September to ₹1.89 lakh crore. This compares with ₹1.73 lakh crore collected in the same month last year, according to data released by the finance ministry on Wednesday. The September figures underline steady momentum in tax receipts. The rise follows sustained economic activity and compliance measures.

Monthly Performance

The September mop-up marked an increase over August as well, when GST collections stood at ₹1.86 lakh crore. That represented a year-on-year growth of 6.5%. The current month’s 9.1% rise signals improvement in both consumption and tax administration. These trends are important for fiscal stability.

The consistent growth in recent months suggests healthy performance across key sectors. Higher compliance and widening of the tax base have also supported the collections. The September outcome highlights the government’s effort to strengthen indirect tax revenue. The trend is expected to continue into the festive season.

April–August Performance

For the April–August period, gross GST collections reached ₹10.04 lakh crore. This was 9.9% higher than ₹9.14 lakh crore recorded in the same period last year. Net revenue during the first five months of FY26 was ₹8.78 lakh crore. This represented an increase of 8.8% from ₹8.07 lakh crore in the year-ago period.

The steady rise reflects strong growth in domestic transactions as well as imports. Net collections, after adjusting refunds, continue to track in line with budget estimates. The figures provide the government with confidence to meet its fiscal targets. The pace of collections is crucial for managing expenditure priorities.

Policy Context

GST has become a critical source of revenue for both the central and state governments. Monthly trends provide an early indicator of economic momentum. Policymakers rely on these figures to assess consumption and production activity. The growth in September is seen as a supportive sign for fiscal planning.

The improvement also comes at a time of continued emphasis on better compliance. Initiatives to curb evasion and expand the taxpayer base have been stepped up. These efforts are aimed at ensuring steady revenue inflows. Enhanced technology adoption has further strengthened the system.

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Conclusion

India’s GST collections rose to ₹1.89 lakh crore in September, extending a trend of steady year-on-year growth. The strong performance reflects higher consumption, tax compliance, and economic activity. With April–August collections already showing nearly 10% growth, the government is on track to meet revenue targets. Continued expansion will support fiscal consolidation goals in FY26.

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