New Delhi, Oct. 2 -- Gross Goods and Services Tax revenue in September crossed Rs.1.89 lakh crore-the seventh highest monthly collection since the GST regime was launched in July 2017-posting a 9% annualised increase despite strong global headwinds. Net revenue saw a modest 5% growth to Rs.1.60 lakh crore, compared to Rs.1.53 lakh crore in the same month last year because of higher refunds, according to the government data released on Wednesday. Total refunds in September jumped 40.1% to Rs.28,657 crore as compared to Rs.20,453 crore in September last year, which signified efficiency in tax administration leading to ease of business. "The government's focus on easing working capital blockage is commendable," said Saurabh Agarwal, tax partner at consultancy firm EY. According to experts, the September collection-which actually reflects the business activities of the previous month (August)-was not significantly affected by the GST rate cut announcement made on August 15. "The increase in gross GST collections to Rs.1.89 lakh crore for the month indicates that there has not been any significant slowdown in economic activity in anticipation of the GST rate cuts during the month of August as this data relates to transactions in that month," Deloitte India partner MS Mani said. According to him, the average monthly collection in the first half of the current financial year (H1, FY26) is "just a little short of Rs.2 lakh crore" marking a "significant increase" compared to H1, FY25 when the average monthly collection was Rs.1.8 lakh crore. The average monthly collection in FY26 as on September 2025 was about Rs.1.99 lakh crore, according to official data. The September data, however, showed tardy single-digit growth posted by major manufacturing states. For example, Maharashtra's collection saw a 5% year-on-year increase to Rs.27,762 crore , Tamil Nadu's , 4% to Rs.11,413 crore, Karnataka's 7% to Rs.13,495 crore and Andhra Pradesh's, 4% to Rs.3,653 crore . Delhi and Telangana saw contraction in their September revenue by 1% and 5% respectively. "The trend of large manufacturing states like Maharashtra, Tamil Nadu, Karnataka growing their GST revenues in single digits has been observed in several months this year. Understanding the reasons for the same will require sectoral data and their growth so that issues with specific sectors can be addressed leading to higher GST revenues in these states," Mani said. According to experts, the rate rationalization under the GST 2.0 (effective from September 22, 2025) will impact revenue collections in the short-run. "Going forward, while the impact of rate rationalization might temper the increase, we expect the festive consumption to ensure collections maintain a positive trajectory....