India’s Goods and Services Tax (GST) collections recorded a 4.6% year-on-year (YoY) increase in October 2025, reaching ₹1.96 trillion, despite the central government’s GST Council implementing tax rate cuts in September during the festive season.

According to official data, the gross GST collections rose to ₹1.96 trillion in October 2025 from ₹1.87 trillion in the same month last year. The pace of growth, however, was the slowest since the rate cuts took effect, marking a 4.6% rise compared to the average growth rate of around 9% seen in recent months.

The gross domestic GST revenue climbed 2% to ₹1.45 trillion, while tax collected from imports rose 13% to ₹50,884 crore in October 2025. The increase in total collections was primarily driven by strong festive demand and higher consumer spending during the month.

GST refunds also witnessed a sharp rise of 39.6% to ₹26,934 crore. After adjusting for refunds, the net GST revenue stood at ₹1.69 trillion, reflecting a marginal 0.2% year-on-year growth.

“Despite significant rate cuts effective from September 22, a slight increase in domestic GST collection is encouraging and shows that demand is steadily increasing. Consistent growth in GST refunds indicates confidence within the tax administration that collections will remain positive in the coming months,” said Pratik Jain, Partner at Price Waterhouse & Co (PWC) LLP.

Karthik Mani, Partner at BDO India, added that GST collections in November 2025 are expected to be stronger, supported by festive demand and greater affordability resulting from lower tax rates.

According to the Confederation of All India Traders (CAIT), total sales of goods and services during the festive season exceeded ₹6 trillion, boosted by the government’s recent GST rate cuts.

While the October figures show slower growth due to reduced tax rates, economists anticipate a rebound in the coming months as lower taxes continue to stimulate consumption and business activity.