GST collections crossed ₹2 lakh crore for the third consecutive month in September, with import revenues rising faster than domestic collections and experts expecting further reforms.

Collection in September again crossed ₹2 lakh crore, the third month in a row, data from the GST portal showed. Experts feel this trend sets the stage for strong process reforms by the GST Council, which is scheduled to meet on October 7.

In September, collections relate to goods consumed and services availed in August.

Domestic and import revenues rise

According to data available on the GST portal, gross GST collections from domestic activities rose 10.1 per cent to about ₹1.38 lakh crore, while import revenues rose 26 per cent to ₹65,525 crore. Refunds, however, slowed to ₹27,001 crore in September, down 3 per cent year on year. After adjusting for refunds, net GST collections rose 18.1 per cent to over ₹1.76 lakh crore in September.

Vivek Jalan, Partner at Tax Connect Advisory Services, says even after a drastic reduction in GST rates under GST 2.0, collections have remained resilient, with net revenues between September 2025 and September 2026 growing around 7 per cent. “With GDP expanding at 7.8 per cent, the Indian economy continues to retain its resilience amidst global headwinds. It must also be noted that part of the September 2026 growth reflects a low base effect, as September 2025 turnover was subdued due to the gap between the announcement and notification of GST 2.0,” he said.

Saurabh Agarwal, Tax Partner at EY India, feels the growth is broad-based, with Uttar Pradesh, Telangana, Gujarat and Karnataka each up 16 per cent to 18 per cent. Assam, Manipur, Arunachal Pradesh and Nagaland have shown considerable growth, showcasing holistic development across the country.

Import GST grows faster than domestic collections

One thing worth noting is that GST on imports is growing much faster than domestic collections. “The government deserves credit for the work done so far under the production-linked incentive schemes, which have laid a solid base for domestic manufacturing. But the import numbers suggest it is time to recalibrate some of these schemes, so that the gains from this groundwork are fully realised,” he said.

Kulraj Ashpnani, Partner at Dhruva Advisors, feels the growth in GST collections in September 2026 reflects preparations for the upcoming festive season and a strong push for tax compliance. The significant expansion in import revenues suggests that manufacturers and traders are bringing forward purchases and stocking up ahead of peak festive demand. “Collections may also have been supported by extensive audit proceedings and departmental scrutiny undertaken over recent months. This revenue performance thus appears to reflect two factors: businesses gearing up for seasonal demand and authorities stepping up compliance efforts,” he said.

Experts see scope for further GST reforms

Experts also think that collection trends will facilitate further reform measures. “Building on this success, the GST Council in its October 2026 meeting can now focus on the next level of reforms — including allowing refunds of input services under the inverted duty structure, streamlining registration for large taxpayers across states, and showing compassion by reducing GST rates on autism centres,” Jalan said, adding that these measures will further strengthen the GST regime, enhance fairness, and extend its benefits to industry and society alike.

Published on October 1, 2026