GST collections hit 3-month high at Rs 1.93 lakh crore despite rate cuts
Gross tax collections from domestic transactions grew 4.8% to Rs 1.41 lakh crore, while import revenues were up 10.1% to Rs 52,253 crore in January
A file image of a fruit seller in Guwahati. (Representational image).
New Delhi, Feb 1: Gross GST collections rose 6.2% to a three-month high of over Rs 1.93 lakh crore in January, indicating increased consumption is making up for rate cuts late last year, sources said on Sunday.
However, refunds dipped 3.1% to Rs 22,665 crore, leading to net Goods and Services Tax (GST) revenues growing 7.6% to about Rs 1.71 lakh crore in January.
Gross tax collections from domestic transactions grew 4.8% to Rs 1.41 lakh crore, while import revenues were up 10.1% to Rs 52,253 crore in January.
GST rates on about 375 items were slashed, making goods cheaper, effective September 2025. Also, four tax slabs of 5, 12, 18 and 28% were merged into two of 5 and 18%, with a highest 40% slab for a select few ultra luxury goods and tobacco products.
The GST collections had initially dipped in the first month of tax cut implementation, with revenues declining to Rs 1.70 lakh crore in November. It rose to Rs 1.74 lakh crore in December.
The January number of Rs 1.93 lakh crore is closer to about Rs 1.96 lakh crore collections in October.
Deloitte India Partner M S Mani said, "The gross GST collections have grown by 6.2% despite the significant rate reductions since September 25, indicating that increased consumption is more than making up for the rate reductions as rightly anticipated by the policy makers".
While many large states continue to show only single-digit growth in GST collections, there appears to be an improvement from the past three months, where some large states depicted below 5% increases, Mani added.
Cess collection (from tobacco products) in January stood at Rs 5,768 crore. This compares to Rs 13,009 crore in collections in January last year, when a cess was levied on luxury, sin and demerit goods such as cars, and tobacco products.
Gross GST collections during April 2025 - January 2026 amounted to Rs 18.43 lakh crore, reflecting year-on-year growth of 8.3% and broadly tracking nominal GDP growth.
EY India, Tax Partner, Saurabh Agarwal, said the consistent revenue trajectory suggests that policy resets, like the September 2025 rate rationalisation, are successfully formalising the economy, insulating us from global headwinds while laying the groundwork for a robust, export-led GST expansion.
PTI