GST collections soar with festive fervour! ₹1.96 lakh crore collected in October – 4.6% growth

New Delhi: India’s gross Goods and Services Tax (GST) collection rose 4.6% year-on-year to about ₹1.96 lakh crore in October, driven by strong festive season demand despite recent rate cuts on several items.

According to government data released on Saturday, GST rates on 375 items — including daily essentials, electronics, and automobiles — were reduced effective September 22, coinciding with the start of Navratri, an auspicious period for new purchases.

The October GST numbers reflect robust festive spending and pent-up demand. Many consumers had postponed purchases in anticipation of the GST rate reduction, following Prime Minister Narendra Modi’s Independence Day announcement that rates would be cut before Diwali.

The gross GST mop-up in October stood at ₹1.96 lakh crore, compared to ₹1.87 lakh crore in October 2024 — marking a 4.6% increase. In contrast, collections in August and September were slightly lower at ₹1.86 lakh crore and ₹1.89 lakh crore, respectively.

While the overall growth rate in October (4.6%) is below the 9% average seen in previous months, the festive boost was evident. Domestic GST revenue rose 2% to ₹1.45 lakh crore, and tax from imports surged 13% to ₹50,884 crore.

However, GST refunds also jumped 39.6% year-on-year to ₹26,934 crore. The net GST revenue for October 2025 stood at ₹1.69 lakh crore, recording a marginal 0.2% year-on-year increase.