India’s GST Revenue Grows 4.6% to ₹1.96 Lakh Crore in October Amid Recent Tax Reductions

India’s Goods and Services Tax (GST) collections rose to ₹1.96 lakh crore in October 2025, according to official data released on November 1. This marks a 4.6% year-on-year increase, the slowest pace in 52 months, even as collections hit a five-month high. The previous month’s revenue stood at ₹1.89 lakh crore, showing a steady rise in inflows.

Tenth Straight Month Above ₹1.8 Lakh Crore

October continued the trend of strong GST inflows, with total revenues staying above ₹1.8 lakh crore for the tenth consecutive month. The last time collections exceeded the ₹2 lakh crore mark was in May 2025, reflecting sustained consumption and tax compliance despite slower growth momentum.

Growth Rate Slows Amid GST Changes

While collections increased in value, the growth rate nearly halved from 9.1% in September to 4.6% in October. Analysts link the slowdown to recent changes in the GST structure. In August, the government announced a major rejig of GST slabs, removing the 12% and 28% categories and moving 90% of goods to lower tax rates. These adjustments, while simplifying taxation, have temporarily moderated revenue growth.

Breakdown of Revenue Performance

Net GST collections rose marginally by 0.6% to ₹1.69 lakh crore, while domestic revenues remained flat compared to last year. Net customs collections showed a 2.5% rise to ₹37,210 crore. Refunds also saw a sharp increase — 26.5% on the domestic side and 55.3% in customs — indicating faster clearance of claims and improved tax administration.

Government Outlook and Economic Impact

The Reserve Bank of India (RBI) expects that recent GST rate cuts will help stimulate consumption and investment, boosting economic activity in the coming months. Reflecting growing optimism, the RBI recently revised India’s GDP growth forecast to 6.8%, up from 6.5%, while the IMF raised its estimate to 6.6%. Policymakers believe stable GST inflows and tax rationalisation will support fiscal balance and long-term growth.

Akansha Arora

My role as a content writer specializing in current affairs at Adda247 involves meticulously researching and crafting compelling articles aimed at guiding and informing candidates preparing for National and State Level Competitive Government Exams. With a dedication to educational excellence, I strive to keep our candidates abreast of the latest developments and trends in current affairs. By providing insightful and engaging content, I aim to ensure that aspiring candidates are well-prepared and informed for their examinations.

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