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October GST Rises 4.6% to Rs 1.96 Lakh Crore Despite Rate Cuts

Analysts say festive-demand resilience blunted the immediate drag from September’s GST 2.0 rate cuts.

Overview

  • Official data show gross GST at Rs 1,95,936 crore year-on-year, with net receipts at about Rs 1.69 lakh crore after refunds surged 39.6% to Rs 26,934 crore, yielding 0.6% net growth.
  • Domestic GST revenue rose 2% to Rs 1.45 lakh crore, while tax collected on imports increased 12.84% to Rs 50,884 crore, indicating firm import-linked activity.
  • The 4.6% rise marked the slowest growth of the fiscal and the weakest since June 2021, reflecting deferred purchases before the September 22 rate changes and only a partial-month impact of lower rates.
  • Tax experts flag elevated refunds and inverted-duty mismatches as near-term pressure points, with November and December collections expected to show the full revenue effect of GST 2.0.
  • SBI Research projects FY26 GST receipts will beat budget estimates and indicates most states are likely net gainers, with early figures highlighting double-digit growth in Karnataka and Telangana and a strong outturn in Andhra Pradesh.