GST collections rise 6.2% to Rs 1,93,384 crore in January

India’s Goods and Services Tax (GST) collections surged to Rs 1,93,384 crore in January, marking a 6.2 per cent increase over the same month last year, according to official data released on Sunday.

Gross GST revenue for the month stood at Rs 1,82,094 crore, while net GST collections — after adjusting for input tax credits — reached Rs 1,70,719 crore, up 7.6 per cent year-on-year. On a year-to-date (April–January) basis, gross collections rose to Rs 18,43,423 crore, reflecting robust growth of 8.3 per cent, with net collections climbing to Rs 15,95,752 crore, a 6.8 per cent increase over the same period last year.

Breaking down the figures, domestic GST collections rose 4.8 per cent year-on-year to Rs 1,41,132 crore, while import GST revenue remained strong at Rs 52,253 crore, up 10.1 per cent from January 2025. Meanwhile, the GST compensation cess, still in force as a transitional measure, fell to Rs 5,768 crore, down sharply from Rs 13,009 crore last year. Total refunds for January stood at Rs 22,665 crore, a slight 3.1 per cent decline year-on-year.

State-wise post-settlement revenues presented a mixed picture, with some regions outperforming while others lagged behind expectations. December 2025 had already shown a healthy 6.1 per cent growth in GST collections, totaling Rs 1,74,550 crore compared with Rs 1,64,556 crore in December 2024. Central GST contributions were Rs 34,289 crore, state GST collections Rs 41,368 crore, and integrated GST Rs 98,894 crore, reflecting heightened economic activity during the festive and year-end period.

In a related development, the finance ministry rolled out a new tax regime for tobacco products, effective from 1 February. The ministry clarified in a detailed FAQ that under the GST framework, the excise duty on cigarettes had previously been negligible — essentially “a fraction of a paisa per stick” — and that the GST compensation cess on tobacco had not been revised since its introduction in July 2017.

The strong January numbers, coupled with the new tobacco tax framework, indicate both robust revenue mobilisation and ongoing fiscal adjustments ahead of the Union Budget 2026, which is being closely watched for its economic and policy impact.

With IANS inputs