One year of GST 2.0: How did State revenues fare?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Aggregate State GST revenue grew 10.5 per cent between October 2025 and September 2026, following the September 2025 rate cuts.
- ✓While this growth stayed near previous levels, States saw uneven results.
- ✓Own collections slowed sharply, but higher settlement shares helped many regions.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
When the States joined GST in 2017, they gave up much of their power to tax goods and services for a defined share of revenue, backed by five years of statutory compensation that ended in June 2022. GST 2.0, the September 2025 rate cuts, is the first major rate change States have had to absorb without that cushion.
The GST Council put the annual cost of the reform at ₹48,000 crore. In its first year, October 2025 to September 2026, aggregate State GST revenue grew 10.5 per cent, only slightly below the 11.4 per cent of 2024-25. The aggregate hides an uneven picture. Odisha and Chhattisgarh collected more State GST yet received less revenue after settlement; Haryana’s revenue grew six times as fast as its own collections. Why did States fare so differently, and why was there no published assessment of how the cost would be shared?
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