Gross GST revenue saw 6.2% annualized growth to over ₹1.93 lakh cr in Jan 2026

GSir john ross Goods and Services assess (GST) revenue saw 6.2% annualized ontogeny to o'er ₹1.93 lakh crore in jan 2026, with government officials and industry experts saying that the tax rates cut boosted the consumption that compensated for an expected sharper fall in collections because of the recent rates rationalisation.The January 2026 collections were ₹1,93,384 crore, compared to ₹1,82,094 crore in January 2025 (after proportionately adjusting compensation cess amount of ₹7,241 crore for a correct annualized comparison), according to government officials, who requested anonymity.The net GST collection in January 2026 after refunds was ₹1,70,719 crore compared to ₹1,58,701 crore in January 2025, registering 7.6% growth. Refunds saw a 3.1% dip in the month to ₹22,665 crore as compared to ₹23,393 crore in the same period last year, officials said.According to experts, the collections are moderated after October because of the impact of the massive GST rates cut after the slab rationalisation. The lower GST rates kicked in from September 22, and from November, they reflected the actual impact.As per the GST system, business transactions undertaken in October, the first full month after the cuts, were captured in November. Even the January 2026 revenues reflect the actual business activities of December.In the collections for January 2026, cess revenue fell to ₹5,848 crore as compared to ₹12,483 crore collected in January 2025. Besides tax rate reduction, the GST rate rationalization also saw the removal of the compensation cess on luxury items, except for sin goods such as pan masala and tobacco products.Gross revenues in the first 10 months (April 2025-January 2026) of the current financial year registered 8.3% growth to over ₹18.43 lakh crore as compared to ₹17.01 lakh crore in April 2025-January 2026, according to the data.Net GST revenue after refunds in January saw a 6.8% increase to ₹15,95,752 crore as compared to ₹14,93,573 crore in the same month of the previous year. Cumulative refunds in April 2025-January 2026, however, saw a robust 19% jump to ₹2,47,672 crore as against ₹2,08,318 crore in April 2024-January 2025.MS Mani, partner at Deloitte India, said the GST collection figures indicate certain specific aspects. “The gross GST collections have grown by 6.2% despite the significant rate reductions since September 25, indicating that increased consumption is more than making up for the rate reductions as rightly anticipated by the policy makers,” he said.“After many months of an increase in the refunds, this month has seen a 7% decline in refunds, which would impact the working capital planning for many businesses.”The abolition of the compensation cess seems to have significantly dented revenues, hence the increase in absolute terms of ₹12,000 crore in net GST collections is offset by the Rs7,000 crore reduction in the compensation cess collections, leading to an increase of only ₹5,000 crores in absolute terms, he said.“While many large states continue to show only single-digit growth in GST collections, there appears to be an improvement from the past three months, where some large states depicted below 5% increases.”