India's goods and services tax collections rose 4.6 per cent year-on-year to about Rs 1.96 lakh crore in October, according to official data reported this weekend, with revenue holding firm even after the September rate rationalisation.
The collections made October the tenth straight month in which GST revenues stayed above the Rs 1.8 lakh crore mark, pointing to resilient consumer demand through the festive season.
The bigger picture
Data for the April-October period showed gross collections of about Rs 13.89 lakh crore, up 9 per cent from Rs 12.74 lakh crore in the same period last fiscal. After adjusting for refunds, net tax collections stood at Rs 1.69 lakh crore for October, 0.6 per cent higher than in October 2024.
September collections had risen 9.1 per cent to Rs 1.89 lakh crore, and the second quarter of the fiscal saw Rs 5.71 lakh crore in collections, a 7.7 per cent increase over a year earlier.
The October performance matters because it is the first full month after the GST Council's rate cuts took effect on September 22. The government said the benefits of the cuts reached consumers during the festive season, with consumption expected to be a key engine of growth.
"The higher gross GST collections reflect a strong festive season, higher demand and a rate structure that has been well absorbed by businesses," said Abhishek Jain, Partner and National Head of Indirect Tax at KPMG in India.
Sources: Zee News — GST Collections Rise 4.6% At Rs 1.96 Lakh Crore In October Despite Rate Cuts
The collections made October the tenth straight month in which GST revenues stayed above the Rs 1.8 lakh crore mark, pointing to resilient consumer demand through the festive season.
The bigger picture
Data for the April-October period showed gross collections of about Rs 13.89 lakh crore, up 9 per cent from Rs 12.74 lakh crore in the same period last fiscal. After adjusting for refunds, net tax collections stood at Rs 1.69 lakh crore for October, 0.6 per cent higher than in October 2024.
September collections had risen 9.1 per cent to Rs 1.89 lakh crore, and the second quarter of the fiscal saw Rs 5.71 lakh crore in collections, a 7.7 per cent increase over a year earlier.
The October performance matters because it is the first full month after the GST Council's rate cuts took effect on September 22. The government said the benefits of the cuts reached consumers during the festive season, with consumption expected to be a key engine of growth.
"The higher gross GST collections reflect a strong festive season, higher demand and a rate structure that has been well absorbed by businesses," said Abhishek Jain, Partner and National Head of Indirect Tax at KPMG in India.
Sources: Zee News — GST Collections Rise 4.6% At Rs 1.96 Lakh Crore In October Despite Rate Cuts
