Gross Goods and Services Tax (GST) revenue grew by 6.2% annually ₹1.93 lakh crore in January 2026, government officials and industry experts say the cut in tax rates has boosted consumption which has compensated for the sharp fall in collections expected due to the recent rate rationalization.
Experts said collections were subdued after October due to the massive GST rate cut. (HT Photo)January 2026 collection was ₹1,93,384 crore as compared to Rs ₹1,82,094 crore in January 2025 (after adjusting the amount of compensation cess proportionately ₹7,241 crore for a proper annual comparison), according to government officials, who requested anonymity.
Net GST collection was in January 2026 after refund ₹1,70,719 crore as compared to Rs ₹1,58,701 crore in January 2025, registering a growth of 7.6%. Refunds decreased by 3.1% in the month ₹22,665 crore compared to Rs ₹23,393 crore in the same period last year, officials said.
According to experts, collections moderated after October due to impact of massive GST rate cut after slab rationalization. The lower GST rates started from September 22 and from November, they reflect the actual impact
As per the GST system, business transactions undertaken in October, the first full month after the deduction, were captured in November. Even January 2026 revenue reflects December’s actual business activity.
More Read
In collection of January 2026, cess revenue has decreased ₹5,848 crore compared to Tk ₹12,483 crore collected in January 2025. Along with the reduction in tax rates, GST rate rationalization also saw the removal of compensatory cess on luxury items, except sin goods like pan masala and tobacco products.
Total revenue grew by 8.3% in the first 10 months of the current financial year (April 2025-January 2026). ₹18.43 lakh crore as compared to Rs ₹17.01 lakh crore in April 2025-January 2026, according to the data.
Net GST revenue increased by 6.8% after the refund in January ₹15,95,752 crore as compared to Rs ₹14,93,573 crore in the same month of the previous year. Cumulative returns between April 2025-January 2026, however, saw a strong 19% jump. ₹2,47,672 crore against ₹2,08,318 crore in April 2024-January 2025.
More Read
MS Mani, partner, Deloitte India, said the GST collection figures point in certain directions. “Gross GST collection increased by 6.2% despite the significant rate cut since September 25, indicating that the increased expenditure more than made up for the rate cut as rightly expected by policymakers,” he said.
“After several months of increased refunds, this month saw a 7% decrease in refunds, which will impact working capital planning for many businesses.”
Abolition of compensation cess appears to have significantly reduced revenue, hence the increase in absolute terms ₹Net GST collections of Rs 12,000 crore were offset by a decline of Rs 7,000 crore in compensation cess collections, resulting in only an increase ₹5,000 crore in absolute terms, he said.
“While many major states show only single-digit growth in GST collections, there appears to be an improvement over the last three months, with some major states depicting below 5% growth.”
