GST Collections Rise 14.7% to ₹2.04 Lakh Crore in September as GST 2.0 Completes a Year

Import-linked revenue grew much faster than domestic collections, so part of the jump reflects higher import values rather than domestic consumption alone.

GST 2.0, one year on

On September 22, 2025, the GST Council's new rate structure took effect. It replaced the old four-slab system with:

• a 5% "merit" rate for essentials;
• an 18% standard rate for most goods and services;
• a 40% rate for a small list of "sin" and luxury items.

The compensation cess was withdrawn on most products, except tobacco.

The worry at the time was that lower rates would cut revenue. A year later, collections have not collapsed. Net GST revenue was subdued in the last months of 2025 but has shown signs of recovery since January 2026, according to an analysis published on the anniversary, and September's double-digit growth adds to that picture.

What comes next

The GST Council was expected to review the impact of the rate changes at its next meeting, rescheduled to October 7, before considering any further broad cuts, according to Business Today. Possible items reported in advance included the 18% rate on mobile phones. The outcome of that meeting had not been confirmed in the reports we reviewed.

What it means for you

For consumers, the simpler structure has meant lower tax on many everyday items since last September. For businesses, strong collections reduce the pressure on the government to raise rates again, which supports price stability.