MUMBAI, November 1, 2025 – India’s goods and services tax (GST) collections reached ₹1.96 trillion ($22.3 billion) in October 2025, marking an increase of approximately 5% compared to October 2024, the Ministry of Finance announced on Saturday.

After accounting for refunds to businesses, the government’s net GST collection stood at ₹1.69 trillion, a modest 0.6% rise year-on-year, reflecting steady economic activity and improved compliance in the Indian goods and services sector.

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Robust GST Collections Indicate Economic Resilience

The October GST figures demonstrate a resilient revenue base for India amid ongoing fiscal pressures and highlight the effectiveness of the country’s indirect tax framework in capturing consumption and service-based revenues.

Analysts noted that the gross GST collections crossing ₹1.9 trillion signal sustained domestic demand, despite global economic headwinds and fluctuations in commodity prices.

“India’s GST performance continues to show the strength of consumption-driven revenue streams, underpinning the government’s fiscal planning for the year,” said a senior tax analyst in Mumbai.

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Breakdown of GST Revenue

While the government did not provide a detailed sector-wise breakdown for October, historical trends indicate that manufacturing, retail, e-commerce, and service industries contribute significantly to monthly GST collections.

The net collections, after refunds, offer a clearer picture of actual revenue inflow to the central and state governments, amounting to ₹1.69 trillion, reflecting 0.6% growth compared to the previous year. This slower net growth compared to gross collections highlights higher refund outflows, likely due to export incentives and input tax credit claims.

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Implications for India’s Economy

The strong GST inflows support the government’s budgetary targets and provide resources for public spending, infrastructure projects, and social welfare programs. Economists suggest that continued GST growth is a positive indicator of economic expansion, consumer confidence, and tax compliance.

With the Indian rupee at 87.8950 per U.S. dollar, the October collections translate to $22.3 billion in gross GST revenue, reinforcing India’s position as one of the world’s largest emerging markets with a steadily expanding tax base.

The collections also contribute to state government revenues, which are critical for local infrastructure, healthcare, and education initiatives across India.

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Key Takeaways

• Gross GST collection in October 2025: ₹1.96 trillion ($22.3 billion), up 5% YoY.
• Net GST collection (after refunds): ₹1.69 trillion, up 0.6% YoY.
• Significance: Indicates robust domestic consumption, fiscal resilience, and steady tax compliance.
• Impact: Supports government spending, state finances, and public infrastructure development.
• Currency conversion: $1 = ₹87.8950.