Gross GST collections hit three-month high of Rs 1.93 lakh crore in January

Gross Goods and Services Tax (GST) collections for January 2026 climbed 6.2 percent year-on-year to a three-month high of Rs 1.93 lakh crore , reflecting a stabilizing consumption trend despite significant tax rate cuts introduced late last year, according to sources.

Net GST revenues grew 7.6 percent to about Rs 1.71 lakh crore , supported by a 3.1 percent decline in refunds , which fell to Rs 22,665 crore. Collections from domestic transactions increased modestly by 4.8 percent to Rs 1.41 lakh crore, while import-linked GST rose sharply 10.1 percent to Rs 52,253 crore, highlighting the rising contribution of international trade.

The government had slashed GST rates on around 375 items from September 2025, merging the four slabs of 5, 12, 18, and 28 percent into two main slabs of 5 and 18 percent, with a highest 40 percent rate for select ultra-luxury goods and tobacco products . Initial implementation saw a dip in collections to Rs 1.70 lakh crore in November 2025, recovering to Rs 1.74 lakh crore in December, with January’s Rs 1.93 lakh crore nearing October 2025 levels of Rs 1.96 lakh crore.

Cess collections , now largely from tobacco products, fell to Rs 5,768 crore from Rs 13,009 crore a year ago, when compensation cess applied to luxury, sin, and demerit goods including automobiles.

Over the past 24 months, GST collections have remained stable , averaging 8-10 percent year-on-year before the September 2025 rate revisions, reflecting consistent domestic activity and compliance. After the rate cuts and narrower cess base, collections dipped temporarily in November-December 2025, with domestic growth remaining modest while import revenues helped support recovery . By January 2026, gross collections rebounded to Rs 1.93 lakh crore, indicating that consumption has helped stabilize revenues despite the narrower tax base.

Experts say the trend suggests that policy measures, like rate rationalisation , are helping formalise the economy and maintain revenue stability even in a period of adjustment. Deloitte India Partner M S Mani noted that higher consumption is compensating for rate cuts, while EY India’s Saurabh Agarwal emphasized that the trajectory lays the foundation for a robust, export-led GST expansion .

April 2025-January 2026 gross collections totaled Rs 18.43 lakh crore, marking an 8.3 percent year-on-year growth , broadly in line with nominal GDP expansion.