GST Collections Reach ₹1.96 Lakh Crore in October
India’s gross Goods and Services Tax (GST) collections for October 2025 reached approximately ₹1.96 lakh crore, marking a 4.6 percent year-on-year increase. The growth was notably subdued, reflecting the combined effect of recent tax-rate cuts and robust festive-season demand.
Factors Influencing the Collections
According to government disclosures, the improved collection outcome was powered by heightened festive consumption, especially in goods and services where tax rates had been reduced. However, the rate of growth remained modest, in part because the tax reductions, launched in late September, are yet to fully impact revenue inflows. Experts note that the lag in tax effect and higher refunds might dampen net revenue growth in the coming months.
Outlook and Implications
While the October figure marks a respectable collection milestone, the softer growth signals caution. The fact that GST bills were lowered for several items under “GST 2.0” reforms has added pressure on revenue momentum. Analysts will be monitoring whether the trend sustains in November and whether net collections—after refunds—keep pace with gross figures. Key parameters to watch include refunds, import-based GST, and underlying consumption patterns.
