New Delhi, November 1 (IANS) Despite rate rationalisation, the Goods and Services Tax (GST) collections rose 4.6 per cent (year-on-year) in the festive month of October at about Rs 1.96 lakh crore, the official data showed on Saturday.
October also made it the 10th consecutive month that revenues remained above the Rs 1.8 lakh crore mark.
According to the government data, the GST collections went up 9 per cent to about Rs 13.89 lakh crore in the April-October period of FY26 -- against Rs 12.74 lakh crore in the same period last fiscal (FY25).
The data further showed that after deducting refunds, the government's net tax collections stood at Rs 1.69 lakh crore, 0.6 per cent more last month than in October 2024.
The month of October saw robust consumer demand after the September 22 rate cuts towards broader tax and economic reforms. The government said that the benefits of recent GST cuts have been extended to consumers in the festive season, as consumption is one of the key engines for growth.
Because of the GST reforms, it's very likely that consumption will increase more than 10 per cent this year, which means there is a strong possibility of extra consumption of around Rs 20 lakh crore.
“The higher gross GST collections reflect a strong festive season, higher demand and a rate structure that has been well absorbed by businesses. It is a positive indicator of how both consumption and compliance are moving in the right direction,” said Abhishek Jain, Partner and National Head-Indirect Tax, KPMG in India.
The GST revenues rose 9.1 per cent year-on-year in September, reaching Rs 1.89 lakh crore. In the second quarter of FY26, collections reached Rs 5.71 lakh crore, a 7.7 per cent increase year-over-year.
Meanwhile, India’s net direct tax revenue climbed 6.33 per cent to over Rs 11.89 lakh crore in the current fiscal year (till October 12). The Income Tax Department said that total gross direct tax collection stood at Rs 13.92 lakh crore, up from Rs 13.60 lakh crore during the same period last fiscal.
This performance was driven by stronger corporate tax collections and slower refund payouts. While corporate tax receipts rose to Rs 5.02 lakh crore from Rs 4.91 lakh crore, non-corporate tax collections (including individuals and HUFs) went up to Rs 6.56 lakh crore from Rs 5.94 lakh crore.
