Why Did GST Collections Cross ₹1.93 Lakh Crore in January?

India’s tax collections have shown steady strength at the start of 2026. Gross Goods and Services Tax (GST) collections rose to over ₹1.93 lakh crore in January 2026, marking a 6.2% year-on-year growth. The rise came mainly from higher import-related revenues, even as GST rates were reduced on several items last year. Net GST revenues also recorded solid growth. The latest data reflects resilient economic activity and stable consumption trends across sectors.

January GST Collection Performance

• India recorded gross GST collections of over ₹1.93 lakh crore in January 2026, showing a 6.2% annual increase.
• After adjusting refunds, net GST revenue stood at ₹1.71 lakh crore, growing by 7.6%.
• The growth indicates steady tax compliance and sustained economic activity.
• Despite recent GST rate rationalisation, collections remain healthy, reflecting improved reporting systems and expanding tax base across domestic trade and imports.

Domestic vs Import Revenue Trend

• GST revenue from domestic transactions grew 4.8% to ₹1.41 lakh crore in January.
• In contrast, import-related GST revenue rose sharply by 10.1%, reaching ₹52,253 crore.
• The higher import collections played a key role in boosting overall GST numbers.
• This trend suggests stronger import demand and better customs-linked GST enforcement, even as domestic consumption shows moderate but stable growth.

Refunds and Net GST Growth

• Total GST refunds during January declined by 3.1% to ₹22,665 crore, helping improve net revenue figures.
• Lower refunds, combined with higher gross collections, resulted in net GST growth of 7.6%.
• A controlled refund outflow indicates better matching of input tax credits and improved compliance.
• Net GST numbers are closely watched as they reflect the actual revenue available to the government.

Impact of GST Rate Cuts and Cess Changes

• Effective September 22, 2025, GST rates on nearly 375 items were reduced, making many goods cheaper.
• Additionally, compensation cess is now levied only on tobacco and related products, unlike earlier when it applied to luxury and sin goods.
• As a result, cess collection fell to ₹5,768 crore in January, compared to ₹13,009 crore a year ago.
• These policy changes have moderated revenue growth but boosted consumer affordability.

Key Summary at a Glance

Question

Q. Gross GST collections in January 2026 stood at approximately:

A. ₹1.75 lakh crore
B. ₹1.85 lakh crore
C. ₹1.93 lakh crore
D. ₹2.05 lakh crore