Imports, low base power fastest GST growth in four years in October. Read the key points, why it matters and what businesses should watch next.
October GST collections rise 22.9%
India's gross goods and services tax collections for October rose 22.9% year-on-year to ₹2.31 trillion, the sharpest growth in four years and the fastest since September 2022, according to provisional government data. The increase was helped by a 42.2% jump in import-linked revenue, which reached ₹72,246 crore, and by a low base from October last year, when collections grew just 4.6%. Domestic GST revenue rose 15.8% to ₹1.59 trillion from ₹1.37 trillion a year earlier.
October's expansion outpaced the 8.9% growth recorded in October 2024, 13% in October 2023 and 16.6% in October 2022. It was the fourth month this fiscal year in which gross collections crossed ₹2 trillion, and the second-highest monthly mop-up on record after April 2026's ₹2.43 trillion. Collections stood at ₹2.11 trillion in July and ₹2.04 trillion in September.
Why the numbers matter
October 2025 was the first full month after the September rate rationalisation, making the year-earlier figure unusually subdued. Economists cited both sequential gains and this base effect. The revised structure largely consolidated the earlier 5%, 12%, 18% and 28% slabs into two main rates of 5% and 18%, with a 40% rate reserved for select demerit and luxury goods. Tax professionals noted that revenue mobilisation held up despite these lower rates.
Domestic revenue made up about 69% of gross collections, with imports contributing 31%. Net GST, after refunds, rose 25.6% to ₹2.03 trillion, outpacing gross growth. Total refunds rose 6.5% to ₹27,934 crore, with domestic refunds up 9.8% and export-related refunds through ICEGATE up 3.4%. Net domestic revenue grew 16.4% to ₹1.45 trillion, while net customs revenue climbed 56.2% to ₹58,319 crore.
For April-October, gross collections rose 13.2% to ₹14.78 trillion, with domestic revenue up 7.4% and import-related revenue up 29.3%. Net collections for the period increased 12.6% to ₹12.69 trillion.
What to watch next
The government wil…
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