India’s GST revenue climbed 4.6 % year‑on‑year in October, posting about ₹1.96 lakh crore in collections. This is the tenth straight month the tax collection has stayed above ₹1.8 lakh crore, showing a steady growth trend.
For the April‑October window of FY26, GST receipts rose 9 % to ₹13.89 lakh crore, compared with ₹12.74 lakh crore in the same period last year. After refunds, net tax collections were ₹1.69 lakh crore – a 0.6 % jump over October 2024.
The lift comes after the 22 September rate cuts that broadened the GST framework. The government says the cuts have helped consumers during the festive season, when spending is a key engine for growth. Analysts expect consumption to jump more than 10 % this year, potentially adding around ₹20 lakh crore in extra spending.
KPMG’s Abhishek Jain said the stronger GST collections show that both consumer demand and business compliance are improving. “The festive season and the new rate structure have been well absorbed by businesses,” he added.
In September alone, GST revenue grew 9.1 % to ₹1.89 lakh crore. In FY26’s second quarter, collections hit ₹5.71 lakh crore – a 7.7 % rise year‑on‑year.
India’s net direct tax revenue also climbed 6.33 % to over ₹11.89 lakh crore by mid‑October. Gross direct tax collections reached ₹13.92 lakh crore, up from ₹13.60 lakh crore a year earlier. Stronger corporate tax receipts (₹5.02 lakh crore versus ₹4.91 lakh crore last year) and higher individual and HUF collections (₹6.56 lakh crore versus ₹5.94 lakh crore) drove the rise, while refund payouts slowed.
Overall, India’s tax picture is improving as consumer spending rises and the government’s GST reforms take effect. The data suggest a healthy push for higher consumption, potentially boosting the economy in the coming quarters.
Source: ianslive
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