New Delhi: Gross GST collections jumped 6.2 per cent to over Rs 1.93 lakh crore in January 2026. The rise in Goods & Services Tax was as result of higher revenues from imports, sources said on Sunday. Total refunds went down 3.1 per cent to Rs 22,665 crore. Net Goods and Services Tax (GST) revenues, however, grew 7.6 per cent to about Rs 1.71 lakh crore in January.
Cess collection (from tobacco products) in January 2025 was recorded at Rs 5,768 crore. In January 2024, the collection stood at Rs 13,009 crore when a cess was levied on luxury, sin and demerit goods such as cars, and tobacco products.
The government announced GST 2.0 reforms with effect from September 22, 2025. After the implementation of new GST rates, the taxes were slashed on 375 items, making goods cheaper. Also, a compensation cess is levied only on tobacco and related products, as opposed to luxury, sin and demerit goods earlier. The lowering of GST rates hugely impacted revenue collections.
Gross tax collections from domestic transactions grew 4.8 per cent to Rs 1.41 lakh crore, while import revenues were up 10.1 per cent to Rs 52,253 crore in January.
GST 2.0 rates
Now, GST has two slabs – 5% and 18%
The taxes were reduced on household essentials to 5% or Nil.
GST on Life-saving drugs, medicines cut from 12% to Nil or 5%.
Two-wheelers, small cars, TVs, ACs, cement cut from 28% to 18% bringing relief to middle-class.
Farm machinery, irrigation equipment cut from 12% to 5%, reducing farming costs.
Tobacco, pan masala, aerated drinks, and luxury goods taxed at 40%.