India's Goods and Services Tax (GST) collections reached ₹1.96 trillion in October 2025, marking a 4.6% increase year-on-year. This growth comes despite significant tax rate reductions implemented by the central government's GST Council in September. Government data released on November 1 shows the robust collections, largely supported by strong festive season spending across the nation. ##^{[1][2][3][4][5][6][7][8][9][10][11][12]}# Festive Season Fuels October Revenue The increase in October's GST revenue reflects a surge in consumer purchases during the festive season. Many consumers delayed their buying decisions, waiting for the announced tax rate cuts to take effect. Prime Minister Narendra Modi had hinted at these reductions in his Independence Day speech, and the GST Council formally rolled out the cuts on 375 items starting September 22, coinciding with the beginning of Navratri. The^{[3][4][8][13]}se items ranged from everyday kitchen staples to electronics and automobiles, aiming to boost consumption. Ho^[3][4][9]wever, the 4.6% year-on-year growth in October was the slowest pace of revenue growth recorded since the tax cuts. This compares to an average growth rate of 9% seen in previous months. Exp^{[1][3][5][6][14][9][13]}erts attributed this moderated growth partly to the rate rationalization and some deferred consumer spending ahead of the festive season. ##^[14][9]# Detailed Revenue Breakdown and Expert Commentary Breaking down the October figures, domestic GST revenue, which indicates local sales, grew by 2% to ₹1.45 trillion. Meanw^{[1][3][5][14][8][9][13]}hile, revenue from imports showed a stronger performance, surging approximately 13% to ₹50,884 crore. After a^{[1][3][5][14][8][9][13]}ccounting for refunds, the net GST revenue for October stood at ₹1.69 trillion, showing a marginal 0.2% growth compared to the same period last year. GST refu^{[1][2][3][5][6][14][9][11][12]}nds themselves saw a significant jump, increasing by nearly 39.6% to ₹26,934 crore. This rise i^{[1][3][14][8][9][13]}n refunds suggests improved tax administration and faster clearance of claims. Pratik Jai^[5][9]n, a Partner at Price Waterhouse & Co LLP, noted the encouraging trend. He stated, "Despite massive rate cuts effective from September 22, a slight increase in domestic GST collection is encouraging and shows that demand is steadily increasing." He added th^[1][8][9]at consistent increases in GST refunds demonstrate confidence from tax administration regarding future positive trends in collections. Abhishek Ja^[1][8][9]in, a Partner at KPMG, also highlighted the positive indicators. He said, "The higher gross GST collections reflect a strong festive season and higher demand… It is a positive indicator of how both consumption and compliance are moving in the right direction." Mahesh Jaisin^[10][11][12]g, a Partner and Indirect Tax Leader at Deloitte India, echoed this sentiment, arguing that the collection numbers underscore the economy's resilience amidst festive momentum and enhanced compliance. ### Economic^[14][9] Resilience and Future Outlook The October collections mark the tenth consecutive month that India's GST revenues have remained above the ₹1.8 trillion mark, signaling sustained economic activity and consumption. For the broader^[5][12] fiscal year, GST collections from April to October of FY26 rose 9.0% to approximately ₹13.89 trillion. This is an increase from ₹12.74 trillion collected during the same period in the previous fiscal year. While the 4.6% gro^[2][12]wth rate in October was slower than the average, analysts like Saurabh Agarwal, an EY India tax partner, anticipate a rebound. He suggested that the muted momentum was primarily due to rate rationalization and consumers waiting to make purchases. Agarwal expects more robust numbers in the coming month, driven by seasonal buoyancy. The government beli^[14][9]eves that the benefits of the recent GST cuts have successfully stimulated consumer demand during the festive season, which is a key engine for economic growth. This sustained perf^[12]ormance in GST collections provides the government with fiscal stability and room for further investments in infrastructure and welfare programs. The full impact of ^[11]the recent tax cuts on government coffers will become clearer in the next month, as taxes are collected with a lag.