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GST Revenues Steady Despite Sweeping Rate Cuts
2 Nov
Summary
- GST collections in October 2025 totaled ₹1.96 lakh crore
- GST refunds rose 39.6% year-on-year in October 2025
- Rate cuts in September 2025 revived consumer demand
In October 2025, India's gross GST receipts totaled ₹1.96 lakh crore, an increase of 4.6% compared to the same period last year. This was the slowest pace of growth this fiscal, following stronger increases of 6.5% in August and 9.1% in September.
The data shows that the impact of pre-GST rate revamp and the lower rates rolled out from September 22, 2025 have slowed the growth in GST collections. However, the mop-up remained close to the ₹2 lakh crore-level, indicating resilience in the system.
Notably, GST refunds rose 39.6% year-on-year in October 2025 to ₹26,934 crore. Experts say this reflects the tax administration's confidence that GST collections will show a positive trend going forward, as the full impact of the rate cuts is felt.
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The rate cuts, which affected 375 items, have revived consumer demand, with the government citing the highest Navratri sales in over a decade. Experts expect the next month's GST data to show a sharp rebound, as the seasonal festive demand kicks in.
