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Tuesday, March 3, 2026

GST Collections Rise 4.6% to ₹1.96 Lakh Crore in Festive October

Key Takeaways

  • Gross GST collections grew 4.6% year-on-year to ₹1.96 lakh crore in October 2025
  • This marks the 10th consecutive month GST revenues have exceeded ₹1.8 lakh crore
  • April-October 2025 period shows 9% growth with total collections of ₹13.89 lakh crore

India’s Goods and Services Tax (GST) collections demonstrated robust performance during the festive month of October 2025, rising 4.6% year-on-year to approximately ₹1.96 lakh crore. This growth occurred despite recent GST rate reductions, highlighting strong consumer demand during the festival season.

Detailed GST Collection Breakdown

According to official data released on Saturday, October’s collections showed mixed performance across different tax components. While Central GST (CGST), State GST (SGST), and Integrated GST (IGST) all recorded year-on-year increases, cess collections witnessed a decline.

The government’s net tax collections after refund deductions stood at ₹1.69 lakh crore, showing a modest 0.6% increase compared to October 2024.

Broader Fiscal Performance

For the April-October period of fiscal year 2025-26, cumulative GST collections reached ₹13.89 lakh crore, representing a solid 9% growth from ₹12.74 lakh crore collected during the same period last fiscal year.

October marked the tenth consecutive month where GST revenues remained above the significant ₹1.8 lakh crore threshold, indicating sustained economic momentum.

Direct Tax Collections Also Show Strength

Complementing the GST performance, 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 at ₹13.92 lakh crore, up from ₹13.60 lakh crore during the same period last fiscal.

This strong direct tax performance was driven by improved corporate tax collections, which rose to ₹5.02 lakh crore from ₹4.91 lakh crore, and non-corporate tax collections (including individuals and HUFs), which increased to ₹6.56 lakh crore from ₹5.94 lakh crore.

GST Simplification Impact

The robust collections follow historic GST simplification measures implemented by the GST Council in its 56th meeting. The tax structure was streamlined from four slabs (5%, 12%, 18%, 28%) to two main rates—5% (merit rate) and 18% (standard rate)—along with a 40% special rate for sin and luxury goods.

These changes, which took effect on September 22 (the first day of Navratri), were designed to reduce the tax burden on citizens while stimulating economic growth. The government has emphasized that the benefits of these GST cuts have been effectively passed to consumers during the festive season, with consumption serving as a key engine for economic expansion.

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