Gross GST Collections Rise 6.2% to ₹1.93 Lakh Crore in January
Net GST revenue rises 7.6% as higher consumption offsets impact of rate rationalisation
New Delhi, Feb 1: Gross Goods and Services Tax (GST) collections increased by 6.2 per cent to over ₹1.93 lakh crore in January, reaching a three-month high and signalling a recovery in consumption following tax rate reductions implemented late last year, sources said on Sunday.
Lower refunds during the month supported revenue growth, with net GST receipts rising 7.6 per cent to approximately ₹1.71 lakh crore. Refunds declined 3.1 per cent to ₹22,665 crore compared to the previous year.
Collections from domestic transactions rose 4.8 per cent to ₹1.41 lakh crore, while revenues from imports recorded a stronger growth of 10.1 per cent, reaching ₹52,253 crore during the month.
GST revenues had initially moderated after rate rationalisation took effect in September 2025, when taxes on around 375 items were reduced and the existing slab structure was consolidated. Collections dipped to ₹1.70 lakh crore in November before improving to ₹1.74 lakh crore in December, with January figures nearing the ₹1.96 lakh crore recorded in October.
Tax experts said the latest numbers reflect the success of the policy shift. Deloitte India Partner M S Mani noted that despite significant rate cuts, higher consumption levels have compensated for reduced tax rates, aligning with policymakers’ expectations.
While several large states continue to report single digit growth, Mani added that the overall trend has improved over the past three months, with fewer states registering growth below five per cent.
Cess collections from tobacco products stood at ₹5,768 crore in January, substantially lower than the same period last year, when a broader range of luxury and demerit goods attracted additional levies.
Cumulatively, gross GST collections from April 2025 to January 2026 amounted to ₹18.43 lakh crore, reflecting an annual growth of 8.3 per cent and broadly tracking nominal GDP expansion.
EY India Tax Partner Saurabh Agarwal said the steady revenue trajectory indicates that recent policy resets are strengthening economic formalisation, cushioning the impact of global uncertainties and setting the stage for sustained, export driven growth under the GST framework.
