India September GST Collections Exceed Rs 2 Lakh Crore

The Government of India reported that gross Goods and Services Tax (GST) collections rose 14.7% year-on-year to approximately Rs 2.04 lakh crore in September. This marks the third time this fiscal year that collections exceeded the Rs 2 lakh crore threshold, following record highs in April and July. For the first half of the fiscal year, gross collections grew 11.6% to over Rs 12.46 lakh crore.

Data reveals a divergence in growth drivers: import-related taxes surged 25.9% to Rs 65,525 crore, while domestic revenue grew 10.1% to Rs 1.38 lakh crore. Net GST revenue increased 18.1% to over Rs 1.76 lakh crore, aided by a decline in domestic refunds. State-level performance varied, with Maharashtra remaining the largest contributor at Rs 29,986 crore and Assam seeing an 88% surge, though Tamil Nadu and Jammu & Kashmir recorded declines.

Tax experts noted that while domestic demand remains resilient, the faster growth in import collections suggests imports are driving a significant portion of the overall buoyancy. Some analysts suggested this trend may require a reassessment of production-linked incentive schemes to support domestic manufacturing. Meanwhile, the GST Council is scheduled to meet on October 7. Union Finance Minister Nirmala Sitharaman indicated the meeting will focus on process reforms under GST 2.0, including e-invoicing and input tax credit rules, rather than major rate changes.