GST Collection: The government’s Finance Ministry said on Wednesday that GST collections in September stood at ₹1.89 lakh crore, compared to ₹1.73 lakh crore in the same month last year. This is the second consecutive month that GST collections have remained above ₹1.85 lakh crore. In August, it was ₹1.86 lakh crore, representing a 6.5% increase on an annual basis.
12.1 lakh crore rupees collected from GST in 6 months
India’s total GST collections for the six months (April to September 2025) reached ₹12.1 lakh crore, an increase of approximately 9.8% from the same period last year. This amount represents nearly half of the total GST collections for the entire fiscal year 2024. Net GST revenue, which remains after certain tax deductions, stood at ₹10.4 lakh crore in these six months, an increase of 8.8% from the previous year. This is contributing to a strong increase in government coffers.
IGST collection again sets record
Integrated Goods and Services Tax (IGST) collections also surpassed ₹1 lakh crore for the first time this year. IGST collections in September totaled ₹1,01,883 crore, surpassing the record ₹1,01,075 crore set in January 2025. This reflects the rapid growth in trade and exchange of goods within the country.
Decline in cess collection
However, cess collections have declined slightly this year. Cess collections declined between April and September, falling from ₹13,451 crore in April to ₹11,652 crore in September. This has been a steady decline between months, but it hasn’t significantly impacted overall GST collections.
GST revenue increases during festivals
GST collections during the festive season of August and September also reached ₹3.8 lakh crore. This is a 7.8% increase from the same period last year, indicating the country’s economic strength. The festivals also boosted shopping in the markets, resulting in higher tax collections for the government.
Major changes in GST slabs
In early September, the GST Council introduced major reforms to the tax system. Previously, there were four different tax slabs (5%, 12%, 18%, and 28%). These have now been reduced to just two main slabs: 5% and 18%. Furthermore, sin and luxury goods have been taxed at 40%. These changes, which came into effect on September 22nd, were intended to simplify the tax system, make it easier for businesses to pay taxes, and provide relief to consumers.
