GST revenue rises 4.6% in October to ₹1.95 lakh cr as festive boost, GST 2.0 spur consumption

In the first full month after the GST 2.0 rate cuts, combined with the effect of festive days, India’s Goods and Services Tax (GST) collections in October 2025 surged 4.6% year-on-year to ₹1.95 crore (1,95,936 crore), up from ₹1,89 lakh crore in September 2025, the latest government data shows. The GST growth underscores the resilience of our economy amid festive momentum & enhanced compliance, say taxation experts.

Of this, the gross domestic GST collection stood at ₹1.45 lakh crore in October, up 2%. Tax from imports stood at ₹50,884 crore, up 12.84%. GST refunds also surged to ₹26,934 crore, recording by 39.6% growth. The net GST revenue, after adjusting for refunds, came in at Rs 1.69 lakh crore, a 0.6% growth YoY.

"Even after the GST 2.0 Rate cuts, the growth in collections by 0.6% reaffirms that the boost in consumption has, to an extent, balanced the de-growth in revenue due to the Rate cuts. The current month’s figures also inculcate the unleashing of pent-up consumption post 15th August 2025, when the rate cuts were announced by Hon’ble Prime Minister," says Vivek Jalan, partner at Tax Connect Advisory Services, a multi-disciplinary taxation firm.

The monthly GST collection for August stood at ₹1.86 lakh crore, a 6.5% growth on YoY.

Mahesh Jaising, partner & indirect tax leader, Deloitte India, said: "The fiscal strength after GST 2.0 arms the government with the bold resolve to drive GST 2.0 reforms— streamlining rates, curbing evasion and simplifying compliance—propelling India toward a truly seamless, tech-driven tax ecosystem."

Jalan said GST 2.0 has also created or deepened an inverted duty structure in many sectors like packaging, farming, pharma, etc. "All such taxpayers will apply for inverted duty refunds from November 2025. As per new norms, 90% of refunds need to be processed in 7 days, and hence Nov’25 and Dec’25 would see an increase in domestic refunds tremendously. The stabilised GST Collections may be gauged post this."

Jalan, however, cautioned that most of the GST compensation cess, which was budgeted at ₹1.7 lakh crore for FY 25-26, has been withdrawn, and this could see a dent in collections. "Overall, while the CGST budget for FY 25-26 is ₹10.1 lakh crore, year-to-date Oct’25, the collections stand at around ₹5.36 lakh crore, which is only 54% of the budget. Hence, in FY 25-26, the Centre’s budgeted growth of 11% in GST collections may be compromised a bit."