India’s gross Goods and Services Tax (GST) collections rose 4.6% year-on-year to ₹1.96 trillion in October, driven by strong festive season demand despite recent tax rate cuts, according to government data released on Saturday.
The rise came even after GST rates were reduced on 375 items — including household goods, electronics, and automobiles — effective September 22, the first day of Navratri, a period traditionally associated with high consumer spending.
Officials said the October figures reflect robust festive buying and pent-up demand, as many consumers had postponed purchases following Prime Minister Narendra Modi’s Independence Day announcement that GST rates would be cut ahead of Diwali. The revised rates took effect during Navratri.
Gross GST revenue for October stood at ₹1.96 trillion, up from ₹1.87 trillion in the same month last year. Collections in August and September were comparatively lower, at ₹1.86 trillion and ₹1.89 trillion, respectively.
However, the 4.6% year-on-year growth in October was below the average 9% increase seen in earlier months.
Domestic GST revenue, reflecting local sales, rose 2% to ₹1.45 trillion, while collections from imports jumped nearly 13% to ₹50,884 crore.
GST refunds also saw a steep rise of 39.6% year-on-year to ₹26,934 crore. After accounting for refunds, net GST revenue in October stood at ₹1.69 trillion — a marginal 0.2% increase from the previous year.