India's gross Goods and Services Tax (GST) collections in October 2025 reached ₹1.96 lakh crore, marking a 4.6% year-on-year rise despite recent significant rate reductions on over 375 items. Robust festive spending, pent-up demand, and improved compliance helped sustain tax revenue growth.
India’s gross GST collections in October 2025, reflecting tax revenue from September business activity, rose 4.6% year-on-year to ₹1.96 lakh crore, the fifth highest monthly collection since the taxonomy was introduced in 2017. This growth was achieved despite a large tax rate cut on 375 items, effective September 22, including essentials, electronics, and automobiles.
The increase was fueled by strong consumer purchasing during the Navratri-to-Diwali festive period. Consumers had delayed purchases anticipating the rate cut, resulting in a surge post-implementation. Domestic GST revenue grew 2% to ₹1.45 lakh crore, while import-related collections rose nearly 13% to ₹50,884 crore in October.
However, GST refunds also jumped by nearly 40% year-on-year to ₹26,934 crore, leading to a modest net growth of 0.2% in actual tax revenues. Experts interpret this as a sign of increased compliance and smoother credit flows in the business ecosystem.
While the 4.6% growth rate is the slowest in the current fiscal year and less than previous months’ averages, it demonstrates resilient consumption and effective tax administration amid rate rationalization.
Key Highlights
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October GST collections at ₹1.96 lakh crore, up 4.6% YoY despite GST rate cuts on 375 items
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Collections benefited from pent-up festive demand and strong Navratri-to-Diwali spending
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Domestic GST grew 2%, imports GST surged nearly 13%
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GST refunds soared 39.6% YoY to ₹26,934 crore; net GST revenue growth marginal at 0.2%
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Rate cuts affected revenue growth pace but post-festival buying is expected to boost future collections
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Experts see increased compliance and smoother business credit flows underpinning revenue stability
Sources: IBEF, Business Standard, Indian Express, CNBC-TV18, Times of India