India’s Goods and Services Tax (GST) revenue climbed 4.6% year-on-year to ₹1.96 lakh crore in October 2025, driven by robust festive spending even as the government implemented major tax reductions on a wide range of products.
The growth in collections came despite the fact that GST rates were slashed on 375 items — including everyday goods, consumer electronics, and automobiles — effective from September 22, coinciding with the start of Navratri. The move was part of a broader effort to boost consumer sentiment and demand ahead of Diwali, following Prime Minister Narendra Modi’s Independence Day pledge to introduce tax relief measures before the festive period.
The combination of rate cuts and festive enthusiasm led to a surge in pent-up demand, with many consumers advancing or resuming purchases that had been delayed in anticipation of lower prices. This buying momentum translated into higher transaction volumes across retail, automobile, and consumer durable segments.
Government data showed that October’s gross GST collection reached ₹1.96 lakh crore, compared to ₹1.87 lakh crore in the same month last year. While this marks a positive uptick, the 4.6% growth rate remains below the fiscal year’s average growth of around 9%. Domestic GST revenue rose 2% to ₹1.45 lakh crore, while GST from imports surged 13% to ₹50,884 crore, indicating a strong rebound in import-led consumption.
Refunds during the month also saw a sharp rise of 39.6% year-on-year to ₹26,934 crore, bringing the net GST revenue for October 2025 to ₹1.69 lakh crore — a marginal increase of 0.2% over the same period last year.
The data reflects a resilient consumption trend despite rate reductions, underscoring the festive season’s vital role in driving India’s tax revenues and broader economic momentum.
Summary:
India’s GST collections rose 4.6% year-on-year to ₹1.96 lakh crore in October 2025, supported by strong festive demand following rate cuts on 375 items. Domestic collections grew 2%, import-related GST jumped 13%, and refunds surged nearly 40%, leaving net revenue at ₹1.69 lakh crore. Despite the modest growth rate, festive consumption provided a crucial boost to tax inflows.
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