India collected 1.89 lakh crore rupees in goods and services tax during September, representing a 9.1 percent annual increase that marks the strongest performance in four months. The government sustained collections above 1.8 lakh crore rupees for nine straight months despite consumers delaying purchases while awaiting tax cuts on non-durable goods. Second-quarter revenues totaled 5.71 lakh crore rupees, with 7.7 percent growth compared to a 11.7 percent expansion in the previous quarter.
Officials restructured the GST system to establish two primary rates: 5 percent and 18 percent, for most products, while imposing a 40 percent levy on cigarettes, tobacco, and sugary beverages. The Reserve Bank of India raised growth projections by 30 basis points to 6.8 percent while S&P Global Ratings maintained its 6.5 percent forecast. Strong tax receipts have reinforced fiscal stability and economic foundations amid external sector pressures from potential tariffs.
Officials restructured the GST system to establish two primary rates: 5 percent and 18 percent, for most products, while imposing a 40 percent levy on cigarettes, tobacco, and sugary beverages. The Reserve Bank of India raised growth projections by 30 basis points to 6.8 percent while S&P Global Ratings maintained its 6.5 percent forecast. Strong tax receipts have reinforced fiscal stability and economic foundations amid external sector pressures from potential tariffs.
