India's GST Collections Up 6.2% to Rs 1.93 Lakh Crore in January

India's gross Goods and Services Tax collections climbed 6.2 percent year-on-year to a three-month high of Rs 1.93 lakh crore in January 2026, driven by stronger import revenues and steady domestic consumption that has offset recent rate reductions, government sources reported.

The net GST revenues, after accounting for refunds, rose 7.6 percent to Rs 1.71 lakh crore for the month. Refunds issued totaled Rs 22,665 crore, marking a 3.1 percent decline from the previous year. Domestic transactions contributed Rs 1.41 lakh crore, up 4.8 percent, while imports generated Rs 52,253 crore, reflecting a sharper 10.1 percent increase. Compensation cess collections, now limited to tobacco and related products, stood at Rs 5,768 crore, down significantly from Rs 13,009 crore a year earlier when the levy also covered luxury and sin goods like automobiles.

These figures indicate a rebound following an initial slowdown after GST rate cuts took effect in September 2025. At that time, rates on about 375 items were reduced to make goods more affordable, and the four existing slabs of 5, 12, 18, and 28 percent were consolidated into two primary rates of 5 and 18 percent. A new 40 percent slab...