GST mop-up rises 22.9% to Rs 2.31 lakh crore in October, second-highest ever

Gross Goods and Services Tax (GST) collections rose 22.9% year-on-year to ₹2.31 lakh crore in October as festive buying boosted domestic demand, according to government data released on Sunday.

October is the second consecutive month when monthly gross Goods and Services Tax (GST) crossed ₹2 lakh crore, and second only to the record of ₹2.43 lakh crore mop-up in April.

The October collections comprised ₹1.59 lakh crore from domestic transactions, registering a growth of 15.8%, and ₹72,246 crore from imports, which saw a sharp increase of 42.2%.

The gross GST revenue in October included ₹42,935 crore in Central GST (CGST), ₹51,340 crore in State GST (SGST) and ₹1.37 lakh crore in Integrated GST (IGST).

After adjusting for refunds, net GST revenue stood at ₹2,03,356 crore, compared with ₹1,61,900 crore in the year-ago month.

Total refunds during October increased 6.5% to ₹27,934 crore from ₹26,225 crore a year ago.

Domestic refunds rose 9.8% to ₹14,007 crore, while export-related GST refunds through ICEGATE increased 3.4% to ₹13,927 crore.

Net domestic GST revenue grew 16.4% to ₹1,45,037 crore, while net revenue from imports surged 56.2% to ₹58,319 crore.

For the April-October period of the current financial year, gross GST collections increased 13.2% to ₹14.77 lakh crore from ₹13.05 lakh crore in the corresponding period last year.

Net GST revenue during the seven-month period rose 12.6% to ₹12.69 lakh crore, compared with ₹11.27 lakh crore in April-October 2025.

Domestic gross GST revenue during April-October grew 7.4% to ₹10.33 lakh crore, while collections from imports rose 29.3% to ₹4.44 lakh crore.

Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat, said October collections capture the festive-season demand cycle, which typically brings higher consumer spending, retail activity and movement of goods across sectors.

"The focus now should be on sustaining domestic revenue growth and ensuring that the benefits of GST 2.0 translate into stronger compliance, smoother input tax credit flows and faster refunds for businesses," Mishra said.

EY India Tax Partner, Saurabh Agarwal, said the GST collections for October 2026 reflect the continued resilience of the Indian economy, despite persistent global headwinds. The steady month-on-month rise in revenue indicates strong underlying consumption and improving compliance.

"Looking ahead, the festive season should keep demand buoyant, and collections for the coming month are likely to remain strong. Businesses should use this period to keep their compliance and reconciliation processes robust, so that the benefits of this growth are sustained," Agarwal said.

Maharashtra recorded the highest GST revenue at ₹35,150 crore in October, registering a growth of 13% over the year-ago period.

Karnataka's collections rose 18% to ₹15,922 crore, while Gujarat recorded a 16% increase to ₹13,516 crore.

Uttar Pradesh and Bihar reported growth of 24% each, with collections rising to ₹10,235 crore and ₹1,827 crore, respectively.

Deloitte Partner Indirect Tax Mahesh Jaising said the sustained revenue buoyancy, despite bold rate cuts mid last year, is providing the confidence and headroom for the GST Council to continue with the reform express.

"The GST reform express continues to gather pace, supported by an increasingly strong and resilient revenue base backed by a robust technology platform. With festive season sales now underway, it is expected that the momentum would continue," Jaising said.