New Delhi — India’s Goods and Services Tax (GST) collections for October reached approximately ₹1.96 lakh crore, marking a 4.6% increase compared with the same month last year. The government announced the figures on Saturday, highlighting stable revenue performance despite significant GST slab revisions implemented recently.

Key Figures

  • Gross collections for October stood at ₹1.96 lakh crore.
  • Net revenue, after refunds, was about ₹1.69 lakh crore, showing a modest rise of roughly 0.6% over last year.
  • October became the tenth consecutive month where GST revenues crossed the ₹1.8 lakh crore threshold.

Why the Rise?

Officials credit the continued revenue momentum to:

  1. Festival season spending, which boosted consumption across retail and services.
  2. Better tax compliance, supported by continued digital enforcement under GST systems.
  3. Strong invoice matching and improved return filing, reducing leakages in the tax system.

Role of GST Rate Rationalisation

The GST slab restructuring which removed the 12% and 28% categories and shifted many items to lower slabs had initially raised concerns of possible revenue slowdown. However, collections suggest that robust demand and steady compliance have offset the impact of reduced tax rates in the near term.

A Note of Caution

Economists point out that although gross revenue rose 4.6%, the growth pace has slowed, making it the lowest year-on-year increase in over four years. The gap between gross and net collections also suggests pressure from higher refunds and transitional adjustments post-rationalisation.

Future collections will depend on:

  • Post-festival consumption trends
  • Industrial output in key sectors
  • The pace of state-level compliance reforms

Why This Matters

Stable GST performance is critical for both the Union and State governments. It directly impacts fiscal planning, revenue sharing, and budget allocations. Sustained revenue collections give policymakers added flexibility to manage subsidies, public spending, and further economic reforms.

Conclusion

October’s GST revenue figures reflect a balanced economic environment, with demand holding steady despite tax reductions. While the growth tempo has moderated, the continued high mop-up signals resilience in consumption and ongoing efficiency in tax administration.