NEW DELHI: GST collections grew 22.9% in Oct – the fastest pace of expansion since the revamp of the tax regime in Sept 2025 – to reach Rs 2.3 lakh crore, the second-highest monthly mop-up since the rationalisation exercise. While consumption remains strong, the numbers indicate a bunching of quarter-end demand and the base effect as sales had slowed in Sept 2025 in anticipation of lower rates kicking in from Sept 22The numbers for Oct 2026, based on transactions in Sept, pegged domestic GST collection growth at 15.8% to just under Rs 1.6 lakh crore, while integrated GST on imports jumped 42% to Rs 72,246 crore. Analysts see the increase in GST on imports as a result of higher commodity prices, although there was also a word of caution given that there has been a rising trend in recent months.Refunds rose 6.5% to Rs 27,934 crore, and net collections were 25.6% higher at over Rs 2 lakh crore.
All states except four report higher GST collections, with Meghalaya and Himachal Pradesh leading growth.
“From the collections data for the month, it is possible to infer that: a) festival season consumption increases have started in a big way; b) focus on strict GST compliance and increasing GST audits is paying off and c) import GST is now a significant part of the overall collections, depicting a growing import driven consumption growth,” said MS Mani, partner at consulting firm Deloitte.The current trends point to the Centre surpassing its GST collection target for the year, a positive for its finances amid higher subsidy outgo due to the war in West Asia. “While the Oct numbers are encouraging, the more important test will be whether this momentum continues after the festive season,” said Manot Mishra, partner and tax controversy management leader at Grant Thornton Bharat, a consulting firm.Among the states, Meghalaya (32%) and Himachal Pradesh (30%) led the growth charts, with all states logging an increase, barring Jharkhand, Odisha, Arunachal Pradesh and Chhattisgarh. Among the large states, Uttar Pradesh reported a 20% rise in SGST mop-up in Oct, while Maharashtra (11%), Karnataka (16%), Tamil Nadu (8%) and Gujarat (18%).
