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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.
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.
