India's October GST Collections Rise 22.9% to Rs 2.31 Lakh Crore as Imports Drive Nearly Half the Increase

October brings Rs 43,165 crore more in GST revenue

India collected Rs 2,31,290 crore in gross goods and services tax in October 2026, an increase of 22.9% from Rs 1,88,125 crore a year earlier, according to provisional government figures released on November 1. Imports generated almost half the additional revenue, even though domestic transactions still accounted for more than two thirds of the total.

Revenue after refunds rose faster. Net GST collections increased 25.6% to Rs 2,03,356 crore, compared with Rs 1,61,900 crore in October 2025. Gross collections measure tax received before refunds; net collections show what remains after money is returned to eligible businesses.

October delivered the strongest annual growth in both gross and net GST revenue so far in the financial year running from April 2026 to March 2027. Gross collections were also the second highest monthly total on record, behind approximately Rs 2.43 lakh crore in April.

The figures arrive as India begins another round of GST process changes covering refunds, business registration and tax credits. For businesses, the practical issue is how quickly tax paid on purchases can be recovered or used against tax owed on sales. For governments, October brought a substantial increase in revenue after those repayments.

One lakh crore equals one trillion rupees. October's gross collection was therefore about Rs 2.31 trillion. Keeping gross revenue, refunds and net revenue separate helps explain why the government's retained tax receipts grew more quickly than the headline collection figure.

Imports generated nearly half the additional revenue

Domestic GST revenue rose 15.8% to Rs 1,59,044 crore, while revenue from imports increased 42.2% to Rs 72,246 crore. Domestic transactions contributed about 68.8% of gross collections, with imports supplying 31.2%.

Domestic revenue increased by Rs 21,716 crore from Rs 1,37,328 crore in October 2025. Import revenue rose by Rs 21,450 crore from Rs 50,796 crore. Against the total annual increase of Rs 43,165 crore, imports supplied approximately 49.7% of the additional money.

Import tax revenue can rise because more goods enter the country, because those goods have higher values, or because the mix of imported products changes. The October figures do not provide a breakdown showing how much each factor contributed.

Vivek Jalan, partner at Tax Connect Advisory Services, linked the increase to procurement of raw materials and intermediate goods, which manufacturers use to make finished products. He viewed that pattern as a sign of stronger production and use of factory capacity.

Saurabh Agarwal, tax partner at EY India, drew attention to another policy concern: the need to strengthen manufacturing within India. He suggested reviewing Production Linked Incentive schemes in sectors with unused budgets. Those schemes reward eligible companies for increasing production.

Domestic demand and manufacturing policy therefore remain central to the story. India collected more tax from transactions within the country, while the much faster increase at the import stage gave the national total an extra lift.

Refunds explain the faster rise in net collections

GST refunds totalled Rs 27,934 crore in October, up 6.5% from Rs 26,225 crore a year earlier. Because refunds increased more slowly than gross revenue, a larger share of the additional tax remained with the central and state governments.

Domestic refunds rose 9.8% to Rs 14,007 crore. Export related refunds processed through ICEGATE, the customs electronic platform, increased 3.4% to Rs 13,927 crore. Together, those two categories account for the month's total refunds.

After these adjustments, net domestic revenue grew 16.4% to about Rs 1.45 lakh crore. Net revenue in the import category increased 56.2% to Rs 58,319 crore, considerably faster than the increase before refunds.

Refunds matter directly to businesses because money awaiting repayment is money unavailable for wages, suppliers or new orders. Exporters and businesses whose purchases attract more tax than their sales can accumulate refundable amounts. Faster processing returns that money to day to day operations sooner.

October was the second month of the financial year in which net GST revenue exceeded Rs 2 lakh crore. April remained higher, at approximately Rs 2.10 lakh crore.

How October compares with earlier months

Gross collections exceeded Rs 2 lakh crore for the fourth time in the first seven months of the financial year. The earlier occasions were April, July and September. October was also the second consecutive month above that level.

The sequence shows how the latest collection fits into the year's revenue pattern:

• April 2026: approximately Rs 2.43 lakh crore in gross GST collections, the record monthly total.
• July 2026: approximately Rs 2.11 lakh crore.
• September 2026: approximately Rs 2.04 lakh crore.
• October 2026: Rs 2,31,290 crore, the second highest monthly total.

October's annual growth rate was also stronger than in recent years. Gross revenue grew 4.6% in October 2025, 8.9% in October 2024, 13.4% in October 2023 and 16.6% in October 2022. The latest 22.9% increase exceeded each of those readings.

Net revenue growth accelerated from 15.8% in July to 8.3% in August, 18.1% in September and 25.6% in October. The sequence includes a slowdown in August followed by two stronger months.

Seven months show a wider gap between imports and domestic revenue

Gross GST collections for April through October reached Rs 14,77,569 crore, an increase of 13.2% from Rs 13,05,213 crore in the same period a year earlier. The increase amounted to Rs 1,72,356 crore.

Net collections reached Rs 12,69,486 crore, up 12.6% from Rs 11,27,355 crore. Refunds over the seven months increased 16.9% to approximately Rs 2.08 lakh crore, compared with Rs 1.78 lakh crore a year earlier.

Domestic gross revenue grew 7.4% to approximately Rs 10.33 lakh crore, while gross revenue from imports increased 29.3% to Rs 4.44 lakh crore. After refunds, domestic revenue rose 6% to Rs 9.15 lakh crore and import revenue increased 34.1% to Rs 3.54 lakh crore.

October's domestic growth of 15.8% was therefore more than twice the 7.4% pace recorded across the seven months. Import growth also accelerated, reaching 42.2% for October against 29.3% for April through October.

The refund pattern differed between the month and the longer period. In October, slower refund growth helped net revenue rise faster than gross revenue. Across April through October, refunds grew faster than gross collections, leaving net growth slightly below gross growth.

Festive demand meets a changed comparison base

October collections largely relate to goods consumed and services supplied in September, reflecting the time between a transaction and the payment of tax. Festive restocking and retail activity therefore feed into the figures through business purchasing and the tax filing cycle.

Manoj Mishra, partner and tax controversy management leader at Grant Thornton Bharat, connected the collection figures to higher consumer spending, retail activity and movement of goods during the festive period. He also called for attention to the domestic component when assessing economic momentum.

"The growth in domestic revenue, therefore, remains an important indicator to watch when evaluating the underlying momentum in the economy," he said.

Jalan highlighted the comparison with October 2025, the first full month in which the effects of the GST 2.0 rate changes appeared in revenue figures. Annual growth compares this year's receipts with a period already affected by those changes.

Agarwal of EY India linked the latest figures to resilient consumption and improving compliance. He expected festive demand to support the following month's collections and urged businesses to keep their tax records and reconciliation processes in order. Reconciliation means checking that invoices, tax credits and returns agree.

Maharashtra leads collections as state growth varies

Maharashtra recorded the largest state collection at Rs 35,150 crore, up 13%. Karnataka followed at Rs 15,922 crore, an increase of 18%, while Gujarat collected Rs 13,516 crore, up 16%.

Tamil Nadu collected Rs 11,661 crore, growing 3%, while Haryana recorded Rs 11,529 crore, up 17%. Uttar Pradesh's collections increased 24% to Rs 10,235 crore. Delhi recorded Rs 9,298 crore, an increase of 10%.

Assam had the strongest growth among larger states, with collections rising 47% to Rs 1,934 crore. Jharkhand followed with growth of 31% to Rs 2,821 crore, and Madhya Pradesh recorded a 29% increase to Rs 3,768 crore.

Punjab's collections rose 25% to Rs 2,856 crore. Andhra Pradesh increased 24% to Rs 4,307 crore, Bihar rose 24% to Rs 1,827 crore and Kerala increased 23% to Rs 3,486 crore.

West Bengal collected Rs 6,055 crore, up 17%, and Telangana recorded Rs 5,958 crore, up 14%. Rajasthan's revenue rose 16% to Rs 4,937 crore, while Odisha's increased 10% to Rs 4,744 crore.

Four jurisdictions recorded declines. Sikkim fell 28% to Rs 221 crore, Ladakh declined 20% to Rs 63 crore, Puducherry fell 7% to Rs 179 crore and Himachal Pradesh declined 2% to Rs 704 crore. The state figures show substantial differences in growth, even as national collections rose strongly.

How the revenue is divided between governments

October's gross total comprised Rs 42,935 crore in Central GST, Rs 51,340 crore in State GST and Rs 1,37,015 crore in Integrated GST. Integrated GST included Rs 64,769 crore from domestic transactions and Rs 72,246 crore from imports.

Central and State GST generally divide tax on transactions within a state between the two levels of government. Integrated GST applies to transactions across state borders and to imports, with revenue subsequently allocated through the settlement process.

After settlement, State GST revenue for states and Union territories increased 13% to approximately Rs 1.03 lakh crore. That amount includes their own State GST receipts and the share of Integrated GST transferred to them.

During April through October, gross Central GST totalled Rs 2,85,858 crore, State GST reached Rs 3,42,491 crore and Integrated GST amounted to Rs 8,49,220 crore. These categories together make up the seven month gross collection of Rs 14,77,569 crore.

Refund and registration changes begin in November

The GST Council's 57th meeting in New Delhi on October 8 recommended faster processing of refunds, wider eligibility for input tax credit and simpler registration for small sellers using e-commerce platforms. Input tax credit allows a business to subtract eligible tax already paid on purchases from the tax it owes on sales.

The Council also recommended raising the prosecution threshold from Rs 1 crore to Rs 5 crore, removing arrest provisions under GST and reducing the maximum general penalty from Rs 25,000 to Rs 10,000. Recommendations requiring legal changes follow the relevant notification or amendment process.

The package follows registration and refund reform plans that included an optional route for eligible online sellers to register using an e-commerce platform's warehouse address in another state. The plans also included provisional approval for 90% of certain refunds through automated risk assessment.

The implementation schedule spans several dates:

• October 8, 2026: the GST Council agreed on recommendations covering registration, refunds, credits and disputes.
• November 1, 2026: the phased administrative rollout was scheduled to begin, alongside notified Finance Act, 2026 provisions concerning discounts, credit and debit notes, and refunds.
• April 1, 2027: measures requiring amendments to GST law were scheduled to follow.

The Finance Act provisions taking effect on November 1 included removal of the minimum Rs 1,000 threshold for export refund claims. For eligible exporters with small claims, that change allows repayment requests below the previous minimum.

Ikesh Nagpal, lead for indirect taxation at AKM Global, described how the Council's recommendations could affect businesses:

"The 57th GST Council's recommendations on faster refunds, simplified registration, improved ITC mechanisms and streamlined compliance can further strengthen this ecosystem by reducing working capital pressures and improving ease of doing business," he said.

Key Points

• October 2026 gross GST collections rose 22.9% to Rs 2,31,290 crore, the second highest monthly total.
• Net revenue increased 25.6% to Rs 2,03,356 crore after refunds of Rs 27,934 crore.
• Import revenue grew 42.2% and supplied nearly half the additional gross revenue compared with October 2025.
• Domestic revenue rose 15.8% and accounted for about 69% of October's gross collections.
• April through October gross collections increased 13.2% to Rs 14,77,569 crore; net collections rose 12.6%.
• Maharashtra led state collections, while Assam recorded the strongest growth among larger states.
• GST process changes began taking effect in November, with further measures requiring legal amendments scheduled for April 2027.