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India records ₹2.31 lakh cr GST collections in Oct, 2nd highest since 2017 rollout
Official data released on Sunday showed gross GST collections reached ₹2,31,290 crore in October, up from ₹1,88,125 crore in October 2025
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India’s gross Goods and Services Tax (GST) collections surged 22.9% year-on-year to over ₹2.31 lakh crore in October, marking the second-highest monthly tally since July 2017 when the tax regime was rolled out. The growth was primarily driven by a sharp uptick in import-linked tax revenue.
Official data released on Sunday showed gross GST collections reached ₹2,31,290 crore in October, up from ₹1,88,125 crore in October 2025 ( ₹1,95,936 crore unadjusted for compensation cess). The collections reflect underlying commercial transactions undertaken in September.
According to historical data, unadjusted for the erstwhile compensation cess revenue phased out in February 2026, October 2026 gross GST revenue is the third-highest, after April 2026 at ₹2,42,702 crore and April 2025 at ₹236,716 crore. On a like-for-like basis, after adjusting for the erstwhile compensation cess of ₹13,451 crore, October’s revenue is the second-highest ever, trailing only April 2026’s record ₹2,42,702 crore.
The spike in October’s gross revenue was led by 42.2% annualised growth in import-linked GST collections at ₹72,246 crore, while domestic GST collections grew by 15.8% to ₹1,59,044 crore, the data showed.
Experts said the boost in import-linked GST collections may also reflect increased inbound shipments of manufacturing inputs rather than end-consumer goods alone.
Saurabh Agarwal, tax partner at EY India said collections could rise further next month on festive demand. “Looking ahead, the festive season should keep demand buoyant, and collections for the coming month are likely to remain strong,” he said.
Agarwal, however, stressed the need to nudge domestic activities to balance import-led revenue growth.
“While the Production Linked Incentive (PLI) schemes have delivered encouraging outcomes in select sectors, it may be time to revisit and recalibrate schemes in certain sectors with unutilised budgets, so that they better support the larger objective of an Atmanirbhar Bharat,” he added.
According to the official data, the net collection after ₹27,934 crore refunds in October this year was ₹2,03,356 crore as compared to ₹1,61,900 crore in the same month of the previous year, registering 25.6% growth. Refunds in October 2026 increased by 6.5% to ₹27,934 crore from ₹26,225 crore in October 2025.
“Overall, the October numbers provide a positive signal for revenue mobilisation and reinforce the growing maturity of India’s GST framework,” said Abhishek Jain, partner and national head indirect tax for KPMG in India.
Deloitte India partner MS Mani said that while the gross GST collections have crossed ₹2 trillion on several occasions in recent months, the festive season consumption boom has resulted in the net GST collections crossing the magical figure of ₹2 trillion as well. “Since the festive season is ongoing, this robustness is expected to continue as it ties with leading macroeconomic indicators,” he said.
According to experts, monthly GST collections have now stabilised around ₹2 lakh crore after significant rate rationalisation in September last year.
At its September 2025 meeting, the GST Council decided on a simplified two-slab tax structure of 5% and 18% under GST 2.0, with a special rate of 40% for luxury and sin goods. On October 8, the council took a slew of decisions for ease of compliance, including decriminalisation of various offences under GST and revoking tax officials’ power to arrest businessmen.
