India’s gross Goods and Services Tax (GST) collection saw a healthy increase in October, climbing 4.6% to reach approximately ₹1.96 lakh crore. This impressive growth was primarily fueled by a robust festive season buying spree, despite the government having recently implemented cuts in GST rates.
These significant GST rate reductions, impacting 375 different items – ranging from everyday kitchen essentials to high-value electronics and automobiles – became effective on September 22nd. This date strategically coincided with the beginning of Navratri, a period widely considered auspicious for making new purchases.
The strong October GST figures clearly illustrate the positive influence of festive sales and the release of pent-up consumer demand. Many consumers had strategically postponed their purchasing decisions, anticipating the promised GST rate cuts. Prime Minister Narendra Modi had previously hinted at these reductions in his Independence Day address, announcing that GST rates would be lowered ahead of Diwali. As planned, the cuts were successfully rolled out just as the Navratri celebrations commenced, encouraging spending.
Official government data, released on Saturday, confirmed that the total GST collection for October stood at roughly ₹1.96 lakh crore. This represents a 4.6% increase compared to the ₹1.87 lakh crore collected in October 2024, demonstrating consistent growth.
It’s worth noting that the tax collections in the preceding months of August and September this year had been slightly more moderate, recording over ₹1.86 lakh crore and ₹1.89 lakh crore, respectively.
However, the year-on-year growth rate for GST collections in October, at 4.6%, was comparatively lower than the approximately 9% average growth observed in earlier months of the year.
Breaking down the figures further, the gross domestic revenue, which serves as a key indicator of local sales activity, saw a 2% rise to ₹1.45 lakh crore. Concurrently, tax revenue from imports surged significantly by about 13%, contributing ₹50,884 crore to the total in October.
Despite the overall increase in collections, GST refunds also experienced a substantial jump, rising 39.6% year-on-year to ₹26,934 crore, which warrants closer examination.
Ultimately, the net GST revenue for October 2025 settled at ₹1.69 lakh crore, indicating a modest 0.2% year-on-year growth after accounting for refunds and adjustments.