GST collection for September rises 9.1% to Rs 1.89 lakh crore

GST collections clocked near double-digit growth to amass Rs 1.89 lakh crore in September -- a month in which the reduced tax rates came into effect in the second half. The GST collections were 9.1 per cent higher than the same month a year ago and over 1.5 per cent higher than the previous month. Gross Goods and Services Tax (GST) mop-up was Rs 1.73 lakh crore in September 2024. Last month, the collection was Rs 1.86 lakh crore, as per government data released on Wednesday.
For the April–August period, GST revenues totalled Rs 10.04 lakh crore, marking a 9.9% increase from Rs 9.13 lakh crore collected during the same period last year.
Alongside steady revenue growth, September also marked a landmark reform in India’s indirect tax system. The GST Council approved a rationalisation of the tax structure, cutting the four existing slabs down to two. The 12% and 28% rates have been scrapped, with only 5% and 18% slabs retained. Items earlier taxed under the discontinued rates will now largely shift to the revised categories, making a range of products cheaper.
The new structure, effective from September 22, 2025, excludes certain products such as pan masala, gutkha, cigarettes, chewing tobacco, zarda, unmanufactured tobacco, and bidi, which will continue under higher rates.