India’s GST Collections Rise 4.6% in October Despite Tax Cuts

India’s Goods and Services Tax (GST) collections rose by 4.6% year-on-year to reach around Rs 1.96 lakh crore in October 2025. This marks the tenth consecutive month where GST revenues have stayed above Rs 1.8 lakh crore, supported largely by strong festive season demand and pent-up consumption after recent tax rate cuts.
The GST rate cuts, which took effect on September 22, lowered taxes on 375 items including kitchen essentials, electronics, and automobiles. The timing coincided with the start of Navratri, a key shopping festival leading up to Diwali, prompting many consumers to make purchases they had postponed earlier. Despite these tax reductions, higher festive demand helped push collections above Rs 1.87 lakh crore collected in October 2024.
Domestic GST revenue rose modestly by 2% to Rs 1.45 lakh crore, while GST from imports grew by nearly 13% to Rs 50,884 crore. Refund payments also went up sharply, increasing almost 40% to Rs 26,934 crore compared to October last year. After refunds, net GST revenue stood at Rs 1.69 lakh crore, a slight increase of just 0.6% year-on-year.
Looking at the cumulative picture for April to October 2025, gross GST collections reached about Rs 13.89 lakh crore, reflecting a robust 9% growth over the same period last year, while net collections rose 7.1% to Rs 12.07 lakh crore. State-level data showed that some northeastern states and union territories like Nagaland, Arunachal Pradesh, Lakshadweep, and Ladakh saw the highest percentage growth in GST collections. Meanwhile, some areas including Puducherry, Himachal Pradesh, and Jharkhand experienced declines.
Overall, the GST collections for October 2025 indicate steady economic activity and continuing strength in India’s indirect tax system, driven by festive season spending and ongoing tax reforms. The government’s efforts to simplify GST slabs and reduce rates have started to take effect, with stable revenue inflows amid shifting consumption patterns.