India GST Collections Rise 4.6% in October

India’s Goods and Services Tax (GST) collections grew by 4.6% year-on-year in October 2025, indicating robust economic activity and consumer spending during the festive season, despite a slowdown in the growth rate compared to September, when collections rose by 9.1%, according to government data released on Saturday.

Under GST 2.0, the Ministry of Finance reduced the multi-layered tax structure to effectively two broad slabs of 5% and 18%, along with a special 40% rate for select items, effective from September 22, 2025.

In September, Finance Minister Nirmala Sitharaman expressed confidence that GST reforms would boost consumption and that better-than-expected Q1 GDP growth could help surpass the projected pace of 6.3%–6.8% for FY2025/26.

The data showed that India’s economy expanded by 7.8% in Q1, marking the strongest growth in five quarters, supported by stronger consumer spending as inflation slowed and improved households' purchasing power.