India’s gross Goods and Services Tax (GST) collections rose 14.7% year-on-year to Rs 2.04 lakh crore in September, remaining above the Rs 2 lakh crore mark for the third consecutive month. 

The latest data points to continued strength in tax revenues, although import-related collections grew much faster than domestic GST revenue.

Gross GST collections stood at Rs 2.04 lakh crore in September, compared with Rs 1.77 lakh crore in the same month last year. The growth rate also improved from 14.3% in August, although it remained below the 15.4% recorded in July. Collections had crossed Rs 2 lakh crore in July and remained around the mark in August.

Import-related GST revenue was a major driver of the September increase. Gross GST collected from imports jumped 25.9% year-on-year to Rs 65,525 crore from Rs 52,031 crore a year earlier. Domestic GST revenue, including imports of services, rose 10.1% to Rs 1.38 lakh crore from Rs 1.25 lakh crore.

The stronger import growth reflects several factors, including currency movements, commodity prices and import volumes. Analysts also noted that higher-value imports such as electronics, machinery, gold and fertilisers may have contributed to the increase. This means part of the headline GST growth is linked to imports rather than domestic activity alone.

Net GST collections grew even faster after accounting for refunds. Net revenue increased 18.1% to Rs 1.77 lakh crore in September from Rs 1.50 lakh crore a year earlier. Total refunds declined 3% year-on-year to Rs 27,001 crore during the month.

For the first six months of FY27, gross GST collections reached Rs 12.46 lakh crore, an 11.6% increase from Rs 11.17 lakh crore during the corresponding period last year. Net GST revenue rose 10.4% to Rs 10.66 lakh crore during the same period.

Among major states, Maharashtra recorded 15% growth in GST revenue, while Karnataka rose 16%, Gujarat 17% and both Uttar Pradesh and Telangana 18% in September.

The latest numbers provide a positive signal for government revenues, while the stronger import contribution will remain important to watch in the coming months. 

The GST Council is scheduled to meet on October 7, with process reforms expected to be among the key areas of discussion.

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