GST collection increased
The effect of GST rate cut is clearly visible during the festive season. Despite the cut in GST rates, gross GST collection in October increased by 4.6 percent to about Rs 1.96 lakh crore due to festive shopping. The new rates of Goods and Services Tax (GST) on 375 items ranging from kitchen items to electronics and automobiles came into effect from September 22. This was the first day of Navratri and this time is considered auspicious for buying new things.
GST collection figures for October reflect the impact of festive season sales and pent-up demand. Prime Minister Narendra Modi, in his Independence Day speech, had announced the cut in GST rates before Diwali. After this, consumers postponed their purchasing decisions while waiting for the reduction in GST rates. According to government data released on Saturday, the gross GST collection in October stood at about Rs 1.96 lakh crore, which is 4.6 percent more than the collection of Rs 1.87 lakh crore in October 2024.
last months collection
Even though GST collection has increased in the month of October during the festival season. But it has been less as compared to last month. Tax collection in August and September this year was slightly less than Rs 1.86 lakh crore and Rs 1.89 lakh crore respectively. The 4.6 percent year-on-year growth in GST collections in October is lower than the average growth of about nine percent seen in previous months. Gross domestic revenue, an indicator of local sales, rose two per cent to Rs 1.45 lakh crore in October. On the other hand, import tax increased by about 13 percent to Rs 50,884 crore. GST refund also increased by 39.6 percent on annual basis to Rs 26,934 crore. Net GST revenue in October 2025 stood at Rs 1.69 lakh crore, which is 0.2 percent more than last year.