GST collections hit ₹2.31 trillion in October as import revenue jumps 42%

NEW DELHI: The Centre's gross goods and services tax (GST) collections surged 22.9% year-on-year to ₹2.31 trillion in October, with import-related revenue growing nearly three times as fast as domestic collections, underscoring the growing contribution of imports to the tax kitty.

Revenue from imports rose 42.2% to ₹72,246 crore, compared with 15.8% growth in domestic GST collections, which increased to ₹1.59 trillion from ₹1.37 trillion a year earlier, according to provisional government data released on Sunday. Total gross collections stood at ₹1.88 trillion in October last year.

October marked the fourth month in the current fiscal year (FY27) when collections crossed the ₹2 trillion threshold and the second-highest monthly haul on record, after April’s ₹2.43 trillion. Collections stood at ₹2.11 trillion in July and ₹2.04 trillion in September.

Imports drive revenue growth

The sharp rise in import-linked collections points to stronger revenue mobilization from imported goods, although the data does not distinguish between the effects of higher import volumes and changes in import values. Domestic revenue accounted for nearly 69% of gross GST collections in October, with imports contributing the remaining 31%.

Net GST collections, after refunds, rose 25.6% to ₹2.03 trillion from ₹1.62 trillion a year earlier, outpacing the growth in gross revenue. Total refunds increased a more modest 6.5% to ₹27,934 crore.

Domestic refunds rose 9.8% to ₹14,007 crore, while export-related refunds processed through ICEGATE increased 3.4% to ₹13,927 crore. Net domestic revenue grew 16.4% to ₹1.45 trillion, while net customs revenue jumped 56.2% to ₹58,319 crore.

For April-October FY27, gross GST collections rose 13.2% to ₹14.78 trillion from ₹13.05 trillion in the corresponding period last year. Net collections increased 12.6% to ₹12.69 trillion.

Domestic gross GST revenue grew 7.4% to ₹10.33 trillion during the seven-month period, while import-related revenue climbed 29.3% to ₹4.44 trillion.

Experts said the sustained growth in import-linked collections highlights the need to strengthen domestic manufacturing capabilities. While the production-linked incentive (PLI) schemes have delivered encouraging results in select sectors, the government may need to revisit and recalibrate schemes in sectors with unutilised budgets to better support the broader objective of an Atmanirbhar Bharat, they said.

“The GST collections for October 2026 reflect the continued resilience of the Indian economy, despite persistent global headwinds. The steady month-on-month rise in revenue indicates strong underlying consumption and improving compliance,” said Saurabh Agarwal, tax partner at EY India.

“The festive season should keep demand buoyant, and collections for the coming month are likely to remain strong. Businesses should use this period to keep their compliance and reconciliation processes robust, so that the benefits of this growth are sustained,” Agarwal said.

Changes take effect

The latest collections follow the 57th GST Council meeting, held in New Delhi on 8 October, where the Centre and states recommended a series of measures to simplify tax administration and improve compliance.

The recommendations included faster, system-based refund processing, wider eligibility for input tax credit (ITC) and simplified GST registration for small sellers operating through e-commerce platforms. The Council also recommended raising the prosecution threshold from ₹1 crore to ₹5 crore, removing arrest provisions under GST and reducing the maximum general penalty from ₹25,000 to ₹10,000.

Further changes to the GST framework took effect from 1 November following the notification of provisions under the Finance Act, 2026. These cover post-supply discounts, credit and debit notes, and GST refunds, including the removal of the minimum ₹1,000 threshold for export refund claims.

The measures are expected to simplify tax administration, provide greater clarity to businesses and improve compliance. Together with the wider reforms recommended by the Council, they could support revenue mobilisation in the coming months.

State collections diverge

State-wise figures showed wide variations in domestic GST revenue growth. Among major states, Assam recorded the highest increase at 47% in October, followed by Jharkhand at 31% and Madhya Pradesh at 29%.

Uttar Pradesh and Bihar both recorded 24% growth, while Kerala's collections rose 23%. Maharashtra, the largest contributor among states, reported a 13% increase to ₹35,150 crore. Karnataka's collections grew 18% to ₹15,922 crore.

Some states, however, saw collections contract. Himachal Pradesh reported a 2% decline in domestic GST revenue, while Sikkim recorded a 28% fall. Puducherry and Ladakh registered declines of 7% and 20%, respectively.

Delhi's domestic GST collections rose 10% to ₹9,298 crore, while Haryana recorded 17% growth to ₹11,529 crore.

Post-settlement SGST revenue of states and Union territories increased 13% to ₹1.03 trillion in October. The figure includes states' own SGST collections and their share of integrated GST (IGST) settled by the Centre.