Gross GST collection for October grew at the slowest pace this fiscal year to ₹195,396 crore as businesses adjusted to the sweeping cuts in tax rates that came into effect from September 22.
Collection went up by 4.6 per cent year-on-year (YoY) basis (₹187,346 crore in October 2024), logging a steady 9 per cent YoY growth in FY26.
The net GST revenue collection (after refund) was up marginally to ₹169,002 crore, growing by a mere 0.6 per cent on a YoY basis. Refunds, however, were up 39.6 per cent to ₹26,934 crore in October compared with last fiscal.
Tax experts attributed the weaker numbers to the recalibration undertaken by businesses led by rate cut and postponement of supplies in the run-up to the revised GST slabs from September 22. October GST collections reflect transactions undertaken in September, and consequently capture only a partial impact of the rate cuts.
EY India tax partner Saurabh Agarwal said GST collections reflected a muted momentum in tax collection primarily due to rate rationalisation effect and the deferred consumer spending ahead of the festive season. This anticipated lag is likely to be compensated by more robust numbers in the next month, driven by seasonal buoyancy, he added.
Deloitte India partner and indirect tax leader, Mahesh Jaising argued that GST collection numbers underscored the resilience of the economy amid festive momentum and enhanced compliance.
GST collected from imports (IGST and cess) increased by 12.84 per cent ₹50,884 crore in October signalling healthy demand for raw materials and capital goods indicative of buoyant manufacturing activity, experts noted.
State scan
State-wise GST collection grew by 2 per cent ₹145,052 crore in October compared with ₹142,251 crore last year. While all major states posted growth, Bengal showed a 1 per cent decline in collection to ₹5,556 crore.
The state-wise collection reflected that manufacturing states posted growth while consuming states like Bengal experienced flat or marginal fall.