October 3, 2025

India's GST collection hit a sparkling Rs 1.89 lakh crore in September, showing a hearty 9.1% rise from last year. This upbeat news came despite fears that customers would hold back on spending because of GST rate cuts kicking in later. The data, based on August transactions, surprises many because it breaks the expectation of a slowdown before tax changes. Tax guru MS Mani from Deloitte India said, "This indicates there has not been any significant slowdown in economic activity in anticipation of the GST rate cuts during the month of August." So, the wheels of the economy kept turning smoothly! What's more, there was a jaw-dropping 40% jump in GST refunds, hinting that businesses were active and waiting patiently for their dues. Experts believe festivals played a big role. Saurabh Agarwal, a top partner at EY, shared, "The recent collection numbers clearly affirm that India’s consumption story continues to be driven by a robust and resilient domestic economy." Imports also gave a strong push, growing an impressive 15.6%. Retailers and e-commerce players stocked up early, gearing up for the busy festive shopping spree. Looking ahead, experts expect the GST rate changes to slow down growth in October and November but still keep collections positive because festival buying will keep the momentum alive. Manoj Mishra from Grant Thornton Bharat added, "Looking ahead, the festive season is likely to further amplify consumption, with these structural and behavioural dynamics potentially boosting formal revenues significantly. The trend underscores that discretionary demand remains strong, while the simplified GST framework continues to stabilise and facilitate economic activity." In a twist, Abhishek Jain of KPMG pointed out, "Another significant aspect is that this growth has continued despite the discontinuation of GST revenue from online money gaming businesses." Even though the online gaming law took effect on October 1, companies had already stopped by August 22 when Parliament passed the bill. In short, India’s GST story is glittering bright, with strong spending, festive cheer, and smart stocking powering the economy forward, proving that good times roll even when the tax rules change!

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Tags: Gst collection, India economy, Festive season sales, Tax refunds, Gst rate cuts, Import growth,