FX.co ★ India's GST Collection Rises 9.1% YoY in September

India's collection of goods and services tax (GST) showed a notable increase, rising by 9.1% year-on-year in September 2025, according to data released by the Ministry on Wednesday. This marks an acceleration from the 6.5% growth observed in August. The current figures underscore a strong domestic economy and counter predictions of a potential slowdown in consumer spending. During the April to August period, gross GST collections saw a 9.9% rise compared to the same timeframe the previous year. In September, India undertook a significant reform of its GST structure, consolidating the tax slabs to 5% and 18%, effective from September 22, 2025. Additionally, a special 40% slab was proposed for select high-value goods, including luxury vehicles. Last month, Finance Minister Nirmala Sitharaman conveyed optimism that the GST reforms, coupled with better-than-anticipated GDP growth in the first quarter, might enable the country to surpass the projected growth rate of 6.3% to 6.8% for the fiscal year 2025/26.