October 2026 GST collections rise 22.9% to Rs 2.31 lakh crore

October's gross mop-up compared with Rs 1.88 lakh crore in the same month a year earlier, the provisional data showed. The 22.9 per cent growth was the fastest pace of gross collections in the current fiscal year. October was the second consecutive month above Rs 2 lakh crore and second only to the record of about Rs 2.43 lakh crore in April.

After refunds, net collections rose 26 per cent to over Rs 2.03 lakh crore. Refunds rose 6.5 per cent to Rs 27,934 crore. Domestic sales contributed over Rs 1.59 lakh crore, up 16 per cent, while GST on imports climbed 42 per cent to Rs 72,246 crore. The gross figure included central GST of Rs 42,935 crore, state GST of Rs 51,340 crore and integrated GST of over Rs 1.37 lakh crore, the data showed.

For April to October, gross collection grew 13.2 per cent to over Rs 14.77 lakh crore. Net collection rose 13 per cent to over Rs 12.69 lakh crore.

Year-earlier base and rate cuts

The GST Council approved the rate rationalisation in September 2025, and revised rates took effect on 22 September 2025. The year-earlier month used in the October 2026 comparison therefore already reflected the lower rates. The government presented the changes as a way to simplify the tax structure, cut prices and support consumption.

What experts say

Grant Thornton Bharat partner Manoj Mishra said October collections capture the festive-season demand cycle, which typically brings higher consumer spending, retail activity and movement of goods across sectors. The data also showed continued strength across major economic centres, including Maharashtra, Karnataka, Gujarat, Uttar Pradesh and Madhya Pradesh.

"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.

Deloitte partner Mahesh Jaising said sustained revenue buoyancy, despite rate cuts mid last year, was providing the confidence and headroom for the GST Council to continue with the reform express. The recent 57th GST Council meeting reflected that momentum, with the agenda focused on simplification, faster refunds, smoother credit flows and reducing friction for taxpayers, he said.

What happens next

EY India tax partner Saurabh Agarwal said the October 2026 collections reflected the continued resilience of the Indian economy despite persistent global headwinds. The steady month-on-month rise in revenue indicated strong underlying consumption and improving compliance, he said.

"Looking ahead, the festive season should keep demand buoyant, and collections for the coming month are likely to remain strong," Agarwal said.