India’s gross GST (Goods and Services Tax) collection surged 4.6 per cent in October, driven by festive buying spree after a massive cut in the GST rates by the GST Council on September 3.
According to the government data released on Saturday, gross GST mop-up in October was about ₹1.96 lakh crore, which marked an increase of 4.6 per cent over ₹1.87 lakh crore collections in October 2024.
As predicted by the Centre, slashing of GST rates on the day of the start of Navratri festival, which fell on September 22 this year, boosted domestic consumption as everyday essentials, kitchen staples, electronics, mobiles and several other items became cheaper.
While Prime Minister Narendra Modi had announced in his Independence Day speech that GST rates will be cut ahead of Diwali, the rate cut was implemented with the onset of Navratri. Consumers held back their purchases for until after the new GST rates would be implemented, which was reflected in the October GST collection number as festive season sales and pent-up demand increased buying.
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In August and September this year, the tax collection was a little subdued at over ₹1.86 lakh crore and ₹1.89 lakh crore, respectively.
The rate of growth in GST collections in year-on-year terms in October at 4.6 per cent is, however, lower than about 9 per cent average growth that the collections saw in the previous months.
The gross domestic revenue, an indication of local sales, grew 2 per cent to ₹1.45 lakh crore, while tax from imports surged about 13 per cent to ₹50,884 crore in October.
However, GST refunds also rose 39.6 per cent year-on-year to ₹26,934 crore.
Net GST revenue stood at ₹1.69 lakh crore in October 2025, recording 0.2 per cent YoY growth.