GST Collections Reach ₹1.96 Lakh Crore in October
India’s gross GST revenue rose 4.6% year-on-year to approximately ₹1.96 lakh crore in October 2025, driven by festive season demand despite recent tax rate reductions.
Key Takeaways
- October GST collections hit ₹1.96 lakh crore, up 4.6% from October 2024
- Growth driven by festive buying despite GST rate cuts on 375 items
- Domestic revenue grew 2% while import taxes surged 13%
Festive Demand Offsets Rate Cuts
The strong collections reflect robust consumer spending during Navratri and Diwali seasons. The government had slashed GST rates on 375 items including kitchen staples, electronics, and automobiles effective September 22 – the first day of Navratri.
Prime Minister Narendra Modi had announced in his Independence Day speech that GST rates would be reduced ahead of Diwali, prompting many consumers to delay purchases until the cuts were implemented with the onset of Navratri.
Monthly Performance Analysis
According to government data released on Saturday, the October collection of ₹1.96 lakh crore compares to ₹1.87 lakh crore in the same month last year. This follows relatively subdued collections in August (₹1.86 lakh crore) and September (₹1.89 lakh crore).
However, the 4.6% year-on-year growth in October was lower than the approximately 9% average growth seen in previous months.
Revenue Breakdown
The gross domestic revenue, indicating local sales, grew 2% to ₹1.45 lakh crore. Meanwhile, tax collected from imports surged about 13% to ₹50,884 crore.
GST refunds increased significantly by 39.6% year-on-year to ₹26,934 crore. After accounting for refunds, net GST revenue stood at ₹1.69 lakh crore in October 2025, recording minimal 0.2% year-on-year growth.
