GST collections rise 4.6% to ₹1.96 lakh cr in October

Gross GST collection increased 4.6% to about ₹1.96 lakh crore in October driven by festive buying spree despite a cut in GST rates.

Goods and Services Tax (GST) rates on 375 items, including kitchen staples to electronics and automobiles, were slashed with effect from September 22 — the first day of Navratri and considered auspicious for buying new goods.

The October GST collection number reflects the impact of festive season sales, and the pent up demand. Consumers had held back their purchase decision, awaiting GST rate cut after Prime Minister Narendra Modi in his Independence Day speech had announced that GST rates will be cut ahead of Diwali. The rate cut was, however, implemented with the onset of Navratri.

According to the government data released on Saturday, gross GST mop-up in October was about ₹1.96 lakh crore, a 4.6% higher over ₹1.87 lakh crore collections in October 2024.

In August and September this year, the tax collection was a little subdued at over ₹1.86 lakh crore and ₹1.89 lakh crore, respectively.

The rate of growth in GST collections in year-on-Year terms in October at 4.6% is, however, lower than about 9% average growth that the collections saw in the previous months.

The gross domestic revenue, an indication of local sales, grew 2% to ₹1.45 lakh crore, while tax from imports surged about 13% to ₹50,884 crore in October.

However, GST refunds also rose 39.6% year-on-year to ₹26,934 crore.

Net GST revenue stood at ₹1.69 lakh crore in October 2025, recording 0.2% YoY growth.