GST Collections Up 9.1% YoY in September, Strong Economic Signals

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India’s GST collections continued their upward trajectory in September 2025, rising by
9.1% to Rs 1,89,017 crore versus Rs 1,73,240 crore a year ago. This marks the
second straight month of robust growth, pointing to sustained economic activity and improved compliance.

Monthly Collections Snapshot

What Drove September’s Growth?

• Domestic component strength: CGST, SGST, IGST and Cess all recorded positive monthly increases.
• Healthy consumption & imports: Supported net revenues even as refund processing picked up.
• Compliance tailwinds: Continued improvements aided steady collection growth.

FY 2024–25 Milestone

The GST system clocked a record Rs 22.08 lakh crore in gross collections during 2024–25,
up 9.4% over the previous year.

GST 2.0: Rate Rationalisation & Impact

• Everyday essentials cheaper: Daily-use products, packaged foods, and personal care items shifted to the 5% slab (from 12–18%).
• Zero-tax essentials: Paneer, chapati, khakhra moved to the 0% bracket, boosting affordability.
• Price cuts likely: Companies expected to reduce prices by 4–6%, supporting rural demand.
• Reform rollout: Rationalised rates effective from September 22 to simplify slabs, address inverted duty, and ease compliance.
• Revenue safeguards: Luxury & sin goods placed in a higher 40% bracket.

Outlook: Why the Trend May Sustain

Experts note that “GST 2.0” provides structural relief across sectors—supporting consumption,
strengthening MSMEs via compliance simplification, and sustaining revenues through calibrated higher rates on select categories.

Positive/Improving   

Higher rate bracket