Key Takeaways
- GST collections rose 4.6% to ₹1.96 lakh crore in October
- 10th consecutive month above ₹1.8 lakh crore mark
- April-October FY26 collections up 9% to ₹13.89 lakh crore
- Strong festive demand and GST reforms drive growth
India’s Goods and Services Tax (GST) collections maintained strong momentum in October, rising 4.6% year-on-year to approximately ₹1.96 lakh crore. This marks the tenth straight month that revenues have stayed above the ₹1.8 lakh crore threshold, reflecting sustained economic activity.
The cumulative GST collections for the April-October period of FY26 reached ₹13.89 lakh crore, showing a robust 9% increase compared to the same period last fiscal year. After accounting for refunds, the government’s net tax collections stood at ₹1.69 lakh crore in October, representing a 0.6% growth over October 2024.
Festive Season Boost and Economic Reforms
The October performance was driven by robust consumer demand following the September 22 rate cuts, which were part of broader tax and economic reforms. The government emphasized that benefits from recent GST reductions have reached consumers during the festive season, with consumption serving as a key growth engine.
Due to ongoing GST reforms, consumption is projected to increase by more than 10% this year, potentially generating additional consumption of around ₹20 lakh crore.
“The higher gross GST collections reflect a strong festive season, higher demand and a rate structure that has been well absorbed by businesses. It is a positive indicator of how both consumption and compliance are moving in the right direction,” said Abhishek Jain, Partner and National Head-Indirect Tax, KPMG in India.
Broader Tax Collection Trends
GST revenues had increased 9.1% year-on-year in September, reaching ₹1.89 lakh crore. For the second quarter of FY26, total collections amounted to ₹5.71 lakh crore, marking a 7.7% year-over-year increase.
Meanwhile, India’s net direct tax revenue climbed 6.33% to over ₹11.89 lakh crore in the current fiscal year (until October 12). The Income Tax Department reported total gross direct tax collection of ₹13.92 lakh crore, up from ₹13.60 lakh crore during the same period last fiscal.
This performance was supported by stronger corporate tax collections and reduced refund payouts. Corporate tax receipts increased to ₹5.02 lakh crore from ₹4.91 lakh crore, while non-corporate tax collections (including individuals and HUFs) rose to ₹6.56 lakh crore from ₹5.94 lakh crore.
