In September 2025, GST collection rose to ₹1.89 lakh crore, a 9% increase from the previous year. Total collection over six months stood at ₹12.1 lakh crore. IGST crossed the ₹1 lakh crore mark for the first time, while cess collection declined. Recently, the GST Council reduced the tax slabs to two, simplifying the system.
GST Collection: The government received significant relief from GST collections in September 2025. According to the Finance Ministry, revenue this month reached ₹1.89 lakh crore, compared to ₹1.73 lakh crore in September last year. Total GST collection from April to September was ₹12.1 lakh crore, marking a 9.8% increase. IGST crossed ₹1 lakh crore for the first time, though a decrease in cess collection was recorded. The festive season and tax reforms have strengthened revenue.
GST Figure Reaches ₹12.1 Lakh Crore in Six Months
Between April and September 2025, the country's total GST collection stood at ₹12.1 lakh crore. This is approximately 9.8% higher than the same period last year. According to Finance Ministry data, net GST revenue during this six-month period, which is the amount remaining after deductions from tax, was ₹10.4 lakh crore, an 8.8% increase compared to the previous year. This growth signifies economic strength for the government's exchequer.
IGST Collection Sets New Record
The collection of Integrated Goods and Services Tax (IGST) has also reached a record level this year. In September, IGST earnings were ₹1,01,883 crore, surpassing the previous record of ₹1,01,075 crore set in January 2025. This indicates an acceleration in trade and the exchange of goods within India. The increase in IGST is indicative of the strengthening of both domestic and inter-state trade.
Slight Decline in Cess Collection
However, a slight decline has been observed in cess collection. Between April and September, cess collection continuously decreased from ₹13,451 crore in April to ₹11,652 crore in September. Despite this reduction, its impact on total GST collection has been minimal.
Increase in GST Revenue During Festivals
During the festivals in August and September, GST collection also saw an increase. Total GST collection during this period was ₹3.8 lakh crore, which is 7.8% higher than the previous year. Increased shopping in markets due to festivals led to a surge in tax collection. This indicates that consumer spending and economic activities remain robust.
Major Changes in GST Slabs
At the beginning of September, the GST Council introduced significant changes to the tax system. Previously, there were four different tax slabs – 5%, 12%, 18%, and 28% – which have now been converted into two main slabs: 5% and 18%. Additionally, a 40% tax was imposed on sin and luxury goods. This change was implemented from September 22, 2025. Its objective is to simplify the tax system, make tax filing easier for businesses, and provide relief to common consumers.
Traders and business entities appear satisfied with this change. The reduction in slabs will facilitate easier tax payments and make the GST system more transparent. Experts believe that this will reduce the tax burden on small and medium businesses and boost trade activity.
IGST Record and Boost in Festival Sales
This increase in GST collection highlights India's strengthening economic position. Rising tax revenue will provide the government with more resources, which can be spent on development projects, social schemes, and infrastructure. The IGST record and increased sales during festivals indicate an improvement in consumer spending.
