India's gross GST collections surged 23% to Rs 2.31 lakh crore in October 2026, supported by festive demand, stronger domestic consumption and higher revenues from imports.
India's Goods and Services Tax (GST) collections recorded a significant increase in October 2026, rising 23% year-on-year to more than Rs 2.31 lakh crore. The growth was supported by increased consumer spending during the festive season and stronger economic activity, according to government data released on Sunday.
October marked the second consecutive month in which monthly gross GST collections crossed the Rs 2 lakh crore milestone. The latest figure is also the second-highest monthly collection recorded since the introduction of GST, following the record collection of approximately Rs 2.43 lakh crore in April.
The 22.9% year-on-year growth in gross GST revenue during October represents the fastest monthly growth recorded in the current financial year.
The strong performance highlights increased economic activity during the festive period, when consumer purchases, retail transactions and the movement of goods generally rise across different sectors.
Domestic sales remained the major contributor to overall revenue, while higher tax collections from imports further strengthened the monthly figures.
According to the government data, GST revenue from domestic transactions increased by approximately 16% year-on-year to more than Rs 1.59 lakh crore in October.
Meanwhile, collections from imported goods registered a sharper increase of around 42%, reaching Rs 72,246 crore. The growth indicates a significant contribution from import-related transactions to the overall GST revenue.
The combined performance of domestic and import-related collections pushed gross GST revenue beyond Rs 2.31 lakh crore.
The October GST revenue included contributions from different components of the indirect tax system.
The collection figures were as follows:
Central GST (CGST): Rs 42,935 crore
State GST (SGST): Rs 51,340 crore
Integrated GST (IGST): More than Rs 1.37 lakh crore
Gross GST Collection: More than Rs 2.31 lakh crore
These figures reflect the contribution of domestic economic transactions and interstate as well as import-related trade to government revenue.
GST refunds also recorded an increase during October. The government data showed that refunds rose 6.5% year-on-year to Rs 27,934 crore.
After adjusting for refunds, net GST collections increased by 26% to more than Rs 2.03 lakh crore.
The stronger growth in net revenue indicates that the government's tax receipts continued to improve despite higher refund disbursements during the month.
India's GST collections maintained a positive growth trend during the first seven months of the current financial year.
Between April and October 2026, gross GST revenue increased 13.2% year-on-year to more than Rs 14.77 lakh crore. Net collections during the same period grew 13% to over Rs 12.69 lakh crore.
The cumulative figures highlight the continued strength of indirect tax revenue and economic activity during FY27.
Industry experts attributed October's strong GST performance to festive-season consumption, improved compliance and higher business activity.
Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat, said the October figures reflect the seasonal increase in consumer spending, retail activity and goods movement during the festive period.
He also highlighted the performance of major economic states, including Maharashtra, Karnataka, Gujarat, Uttar Pradesh and Madhya Pradesh.
Mishra said the next priority should be sustaining domestic revenue growth while ensuring that GST 2.0 reforms improve tax compliance, input tax credit processes and refund timelines.
Saurabh Agarwal, Tax Partner at EY India, said the October figures demonstrate the resilience of the Indian economy despite continuing global challenges.
He noted that steady revenue growth reflects healthy consumption and improving tax compliance. He also expects festive-season demand to support collections in the coming months.
Mahesh Jaising, Partner – Indirect Tax at Deloitte, said sustained revenue growth despite earlier GST rate reductions provides the GST Council with greater confidence to continue its reform agenda.
He highlighted the 57th GST Council meeting, noting that the focus is increasingly shifting towards simpler tax processes, quicker refunds, smoother input tax credit flows and reduced compliance difficulties for businesses.
Nitin Vijaivergia, Partner at Price Waterhouse & Co LLP, highlighted the contribution of domestic consumption and imports to the October figures.
He noted that domestic GST collections grew 15.8%, while import-related revenue increased 42.2%, demonstrating the growing contribution of imported goods to overall tax receipts.
Ikesh Nagpal, Lead – Indirect Taxation at AKM Global, also linked the strong collections to festive spending and post-GST 2.0 price rationalisation. He said GST is increasingly reflecting not only government revenue but also economic formalisation and broader business activity.
Conclusion
October's GST collections underline the strength of India's consumption-driven economic activity and improving tax compliance. With gross revenue reaching its second-highest monthly level, festive demand and ongoing GST reforms are expected to remain important factors supporting revenue growth in the coming months.