GST Collections Hit ₹1.96 Lakh Crore in October Despite Rate Cuts

India’s Goods and Services Tax (GST) collections rose 4.6% year-on-year to ₹1.96 lakh crore in October, maintaining a strong streak for the 10th consecutive month above the ₹1.8 lakh crore mark, official data showed on Saturday.

For the April–October period of FY26, gross GST revenue grew 9% to ₹13.89 lakh crore, up from ₹12.74 lakh crore a year earlier. After refunds, net collections stood at ₹1.69 lakh crore, slightly higher than October 2024.

Officials attributed the robust numbers to strong festive demand, rate rationalisation, and higher tax compliance following the September 22 GST rate cuts. The government said the move boosted consumer spending and business confidence.

“The higher GST collections reflect a strong festive season, higher demand, and a rate structure that has been well absorbed by businesses,” said Abhishek Jain, Partner & National Head (Indirect Tax) at KPMG India.

The government expects consumption to grow over 10% this fiscal, implying an additional ₹20 lakh crore in spending.

Meanwhile, net direct tax revenue rose 6.33% to ₹11.89 lakh crore till October 12 of FY26, driven by stronger corporate tax inflows and lower refunds.

Corporate tax receipts climbed to ₹5.02 lakh crore (from ₹4.91 lakh crore), while non-corporate tax collections — including individuals and HUFs — grew to ₹6.56 lakh crore (from ₹5.94 lakh crore).