GST collections jumped 23 per cent year-on-year to the second-highest level of over Rs 2.31 lakh crore in October as festive buying boosted domestic demand, according to government data released on Sunday.
October is the second consecutive month when monthly gross Goods and Services Tax (GST) crossed Rs 2 lakh crore, and second only to the record about Rs 2.43 lakh crore mop-up in April.
Also, the 22.9 per cent year-on-year growth clocked during the month is the fastest recorded pace of gross mop-up in the current fiscal year.
Gross GST collections from domestic sales rose 16 per cent to over Rs 1.59 lakh crore, and revenues from imports climbed 42 per cent to Rs 72,246 crore.
The Rs 2.31 lakh crore collection includes Central GST mop-up of 42,935 crore, State GST of Rs 51,340 crore and Integrated GST of over Rs 1.37 lakh crore, data showed.
Goods and Services Tax (GST) refunds increased 6.5 per cent year-on-year to Rs 27,934 crore in October.
After adjusting for refunds, net GST collections rose 26 per cent to over Rs 2.03 lakh crore in October.
In April-October, gross GST collection grew 13.2 per cent to over Rs 14.77 lakh crore. Net collections rose 13 per cent to over Rs 12.69 lakh crore.
Grant Thornton Bharat, Partner and Tax Controversy Management Leader, Manoj Mishra said October collections capture the festive-season demand cycle, which typically brings higher consumer spending, retail activity and movement of goods across sectors.
The performance across key states, including Maharashtra, Karnataka, Gujarat, Uttar Pradesh and Madhya Pradesh, also points to continued strength in GST collections across major economic centres.
“The focus now should be on sustaining domestic revenue growth and ensuring that the benefits of GST 2.0 translate into stronger compliance, smoother input tax credit flows and faster refunds for businesses,” Mishra said.
EY India Tax Partner, Saurabh Agarwal, said the GST collections for October 2026 reflect the continued resilience of the Indian economy, despite persistent global headwinds. The steady month-on-month rise in revenue indicates strong underlying consumption and improving compliance.
“Looking ahead, the festive season should keep demand buoyant, and collections for the coming month are likely to remain strong. Businesses should use this period to keep their compliance and reconciliation processes robust, so that the benefits of this growth are sustained,” Agarwal said.
Deloitte Partner Indirect Tax Mahesh Jaising said the sustained revenue buoyancy, despite bold rate cuts mid last year, is providing the confidence and headroom for the GST Council to continue with the reform express. The recent 57th GST Council meeting reflects this reform momentum, with the reform agenda increasingly focused on simplification, faster refunds, smoother credit flows and reducing friction for taxpayers.
“The GST reform express continues to gather pace, supported by an increasingly strong and resilient revenue base backed by a robust technology platform. With festive season sales now underway, it is expected that the momentum would continue,” Jaising said.
Price Waterhouse & Co LLP Partner Nitin Vijaivergia said the collection reflects strong revenue momentum. Domestic collections grew 15.8 per cent, signalling healthy consumption and economic activity, and import revenues surged 42.2 per cent, highlighting the increasing contribution of imports to overall GST revenues.
AKM Global, Lead, Indirect Taxation, Ikesh Nagpal said collections coincide with the festive season, increased consumer spending and post-GST 2.0 price rationalisation, potentially supporting demand across several sectors.
“The broader significance lies in the fact that GST is increasingly serving not just as a revenue instrument but also as a reflection of economic formalisation and business activity,” Nagpal said.
-PTI
