Reference to The economic times .The good tax scenario of India is still going on as the income of Goods and Services Tax (GST) in October 2025 has risen by 4.6 percent per year to 1.96 lakh crore, despite the tax rationalisation through GST 2.0 reform structure that the government introduced recently. The hike represents a high economic growth and a good consumer demand during the festivity.
The Festive Demand is a Powerhouse to GST Growth.
According to the data released by the Finance Ministry, in October 2025, gross GST revenue was 1.96 lakh crore (30) as compared to 1.97 lakh crore in the same month last year. The post-refund net GST revenue stood at 1.69 lakh crore an improvement of 0.6 per cent over the last year.
This kind of performance points to continuity of domestic consumption in India and positive impact of new tax simplifications. The growth in spending during the classes and the holiday season is clearly apparent in terms of the continuous growth in spending in the business and in the steady rates and outcomes of the business.
Break down of October GST Collections.
In the gross GST revenue:
- Central GST (CGST): ₹36,547 crore
- State GST (SGST): ₹45,134 crore
- Integrated GST (IGST): ₹1,06,443 crore
- Cess: ₹7,812 crore
There was a slight decrease in the collections of Cess collections but the Central and State GST collections showed growth on an annual basis.
April-October FY 26 is recording a 9 percent GST growth.
Cumulative GST collections are higher by 9 per cent to nearly 13.89 lakh crore between the period April and October FY 26 against 12.74 lakh crore during the same period last year.
Domestic revenue was also up by 2 per cent to 1.45 lakh crore, gross GST revenue was also up by 12.84% per annum to 50,884 crore. There was also improvement of net custom revenue by 2.5, and the value was 37,210 crore.
Under GST 2.0 Reforms, Revenue Remains Unchanged.
The reforms of GST that the government introduced on September 22, 2025, made the complex tax bracket two big rates, 5 and 18, and imposed a special 40 percent tax on some luxury products.
Despite the changes, general collections have remained booming. The authorities stated that the current strong currents in the GST collections is demonstrating that the reforms are increasing compliance, boosting spending and keeping the revenues afloat within industries.
Analyst Rating: A Good Omen in the GST 2.0.
Such high GST numbers on the festive season is a clear indication that the consumer confidence is high and the business has been healthy according to Amit Maheshwari, Tax Partner at AKM Global.
This optimism was supported by Mahesh Jaising, Partner and Indirect Tax Leader at Deloitte India who stated, such fiscal health has enabled the government to feel that it can accelerate GST 2.0 reforms – simplifying rates, reinforcing evasion, and requiring a seamless and tech-enabled tax environment.
Looking Ahead
In spite of the structural tax cuts, the GST India performance is good. The data does not only imply a slow recovery following the reform, but also the reason why the economy is capable of resisting any alteration within the fiscal policies.
As the festive season is continuing into the second quarter, the policy makers are expected to be focused on the aspects of the simplification, digital compliance and the consistent increase in revenue, making the GST 2.0 a foundation of the new age of Indian economic development.
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