September GST collection increases to Rs. 1,89,000 crore (US$ 21.29 billion) vs Rs. 1,86,000 crore (US$ 20.96 billion) in August
- IBEF
- October 3, 2025
India’s gross goods and services tax (GST) collections rose 9.1% YoY to Rs. 1,89,000 crore (US$ 21.29 billion) in September 2025, driven by higher sales following the recent tax rate rationalisation. Collections were higher than Rs. 1,73,000 crore (US$ 19.49 billion) in September 2024 and Rs. 1,86,000 crore (US$ 20.96 billion) in August 2025. Domestic revenue increased 6.8% to Rs. 1,36,000 crore (US$ 15.32 billion), while GST from imports surged 15.6% to Rs. 52,492 crore (US$ 5.91 billion). Refunds rose sharply by 40.1% YoY to Rs. 28,657 crore (US$ 3.23 billion), resulting in a net GST revenue of Rs. 1,60,000 crore (US$ 18.03 billion), up 5%. According to a Partner at Deloitte India, Mr. MS Mani, the steady growth reflects no slowdown in activity despite GST rate cuts, with improved refund processes providing relief to businesses.
The government’s GST reforms, effective from September 22, 2025, introduced a simplified four-slab structure of 0%, 5%, 18% and 40%, replacing the earlier six-tier system. Nearly 375 items saw price reductions across essentials, medicines, electronics, and automobiles. Goods in the 0% slab include ultra-high-temperature (UHT) milk, Indian breads, select life-saving medicines, and life and health insurance premiums. The 5% rate applies to personal care products like toothpaste and shampoo, dairy items such as butter and ghee, footwear up to Rs. 2,500 (US$ 28.17), and select textiles. The 18% slab covers household appliances, televisions, air conditioners, cars up to 1,200 cc, and motorcycles up to 350 cc. The newly introduced 40% rate applies to luxury and sin goods, including premium cars, tobacco, and alcoholic beverages.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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