GST collections rise 22.9% to ₹2.31 lakh crore in October, second-highest ever
In one line: India collected about ₹2.31 lakh crore in gross GST in October 2026, 22.9% more than a year earlier and second only to April 2026's record of about ₹2.43 lakh crore.
Published 2 November 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work
Data released on Sunday, 1 November 2026, show that gross Goods and Services Tax (GST) collections in October 2026 rose 22.9% from a year earlier to about ₹2.31 lakh crore. This is the second-highest monthly figure ever, after the record of about ₹2.43 lakh crore in April 2026, and the second month in a row above ₹2 lakh crore. Of the gross amount, Central GST (CGST) was ₹42,935 crore, State GST (SGST) ₹51,340 crore and Integrated GST (IGST) about ₹1.37 lakh crore.
Collections from domestic transactions rose 15.8% to ₹1.59 lakh crore, helped by festive-season buying, while tax on imports rose 42.2% to ₹72,246 crore. Refunds rose 6.5% to ₹27,934 crore: ₹14,007 crore of domestic refunds and ₹13,927 crore of export refunds. Net GST, which is gross collection minus refunds, came to ₹2,03,356 crore, up from ₹1,61,900 crore a year earlier. From April to October 2026, gross collections rose 13.2% to ₹14.77 lakh crore and net collections rose 12.6% to ₹12.69 lakh crore. Maharashtra collected the most in October, ₹35,150 crore.
The numbers come a little over a year after the GST Council moved most goods and services to two slabs, 5% and 18%, with a 40% rate for a few goods, from 22 September 2025. Tax experts read the data differently. EY India said they reflect "the continued resilience of the Indian economy". Grant Thornton Bharat said the focus should now be on sustaining domestic revenue growth, faster refunds and smoother input tax credit.
Prelims facts
- Gross GST in October 2026 was about ₹2.31 lakh crore, up 22.9%, the second-highest month after April 2026 (about ₹2.43 lakh crore).
- Domestic GST rose 15.8% to ₹1.59 lakh crore, while GST on imports rose 42.2% to ₹72,246 crore.
- Refunds were ₹27,934 crore, leaving net GST of ₹2,03,356 crore.
- April to October 2026 gross collections rose 13.2% to ₹14.77 lakh crore.
- GST moved to two main slabs (5% and 18%) with a 40% rate for a few goods from 22 September 2025.
Quick recall
- Gross GST collection in October 2026?
- About ₹2.31 lakh crore, up 22.9% year on year.
- Highest monthly gross GST on record (as of October 2026)?
- April 2026, about ₹2.43 lakh crore.
- GST on imports in October 2026?
- ₹72,246 crore, up 42.2%.
- Net GST in October 2026?
- ₹2,03,356 crore, after refunds of ₹27,934 crore.
- Which constitutional amendment introduced GST?
- The Constitution (101st Amendment) Act, 2016; GST began on 1 July 2017.
- Which Article creates the GST Council?
- Article 279A.
- Which Article covers GST on inter-State supplies (IGST)?
- Article 269A.
- From when did the two-slab GST structure apply?
- 22 September 2025: 5% and 18%, with 40% for a few goods.
Prelims practice question
With reference to Goods and Services Tax (GST) in India, consider the following statements:
1. GST on imports is collected as Integrated GST (IGST).
2. Net GST revenue is gross collection minus refunds.
3. Decisions of the GST Council need a simple majority of members present and voting.
Which of the statements given above are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Show answer
Answer: (a) 1 and 2 only. Statement 1 is correct: imports are treated as inter-State supplies and carry IGST. Statement 2 is correct: net revenue is what remains after refunds. Statement 3 is wrong: under Article 279A a decision needs three-fourths of the weighted votes of members present and voting.
Use this in UPSC Mains: previous-year questions
Recurring theme: GST design, revenue performance and Centre-State fiscal relations
- How to use this
Use October 2026 figures to show that GST revenue is buoyant even after the 2025 rate cuts, while noting the import-led and seasonal nature of the rise.
- Gross GST in October 2026 was about ₹2.31 lakh crore, up 22.9%, second only to April 2026's ₹2.43 lakh crore.
- April to October 2026 gross GST rose 13.2% to ₹14.77 lakh crore despite the September 2025 move to 5% and 18% slabs.
- Import GST rose 42.2% to ₹72,246 crore against 15.8% domestic growth, so headline buoyancy partly reflects imports.
- How to use this
Cite current collections to show that the common market built by the 101st Amendment yields steady revenue, while noting gaps that remain.
- IGST of about ₹1.37 lakh crore in October 2026 shows the inter-State and import tax mechanism under Article 269A at work.
- The GST Council under Article 279A moved most items to 5% and 18% slabs from 22 September 2025, simplifying the rate structure.
- Refunds of ₹27,934 crore in October 2026 show input tax credit and export refunds still matter for removing cascading.
Mains practice question
October 2026 GST collections were the second-highest ever, yet the rise was led by imports. Examine what monthly GST data reveal and conceal about the state of the economy and Centre-State finances. (250 words)
Model answer
Gross GST collections in October 2026 rose 22.9% to about ₹2.31 lakh crore, second only to April 2026, a year after rates were cut to two main slabs.
What the data reveal
- Consumption: domestic GST rose 15.8% to ₹1.59 lakh crore, reflecting festive demand.
- Revenue buoyancy: April to October gross collections rose 13.2% to ₹14.77 lakh crore despite the September 2025 rate cuts.
- Formalisation: more transactions on the GST network widen the tax base.
- State resources: SGST of ₹51,340 crore, plus the States' share of IGST, funds State budgets.
- Leaders and laggards: Uttar Pradesh grew 24% while Maharashtra, the largest contributor, grew 13%.
What they conceal
- Import-led growth: import GST rose 42.2% to ₹72,246 crore, which reflects the import bill more than domestic demand.
- Seasonality: festive months inflate collections, so one month is a weak test.
- Refunds: gross figures hide refunds of ₹27,934 crore; net GST was ₹2,03,356 crore.
- Uneven States: Maharashtra alone collected ₹35,150 crore, so averages hide wide gaps.
Way forward
- Publish net and State-wise data prominently and judge buoyancy over several quarters.
- Speed up refunds and input tax credit, as tax experts urge.
- Use the GST Council under Article 279A to review rates only after a full year of post-reform data.
- Strengthen compliance so that domestic collections, not imports, drive growth.
GST data are a useful pulse of the economy, but only when read net of refunds, imports and seasonal effects.
The basics
Why this matters
Every month the government releases Goods and Services Tax (GST) collection data. Prelims asks how GST is split between the Centre and the States, and Mains asks whether GST has delivered on revenue. October 2026 data give you fresh numbers for both.
How GST is collected
GST came into force on 1 July 2017 after the Constitution (101st Amendment) Act, 2016. It is a tax on the supply of goods and services. Within a State, a sale carries two equal halves of tax: Central GST (CGST) for the Centre and State GST (SGST) for the State. A sale across State borders, and every import, carries Integrated GST (IGST), which the Centre collects and later settles between the Centre and the destination State.
- 1CGST₹42,935 crore, the Centre's share on sales within a State
- 2SGST₹51,340 crore, the State's share on sales within a State
- 3IGSTAbout ₹1.37 lakh crore, on inter-State sales and imports, later split between Centre and States
Gross, refunds and net
Gross collection is all the tax paid in the month. Some of it goes back as refunds, mainly to exporters (who are zero-rated, so the tax they paid on inputs is returned) and to firms whose tax on inputs is higher than the tax on their output (an inverted duty structure). Gross minus refunds is net revenue, the money the governments can actually spend.
- 1Gross GSTAbout ₹2.31 lakh crore, up 22.9% from a year earlier
- 2Minus refunds₹27,934 crore, up 6.5%: ₹14,007 crore domestic and ₹13,927 crore on exports
- 3Net GST₹2,03,356 crore, up from ₹1,61,900 crore a year earlier
Domestic demand versus imports
The domestic part of gross GST rose 15.8% to ₹1.59 lakh crore, which reflects festive buying. Tax on imports rose much faster, by 42.2% to ₹72,246 crore. So a large part of the jump came from imports, not only from Indian consumers.
The bigger picture
GST rates were rationalised into two main slabs, 5% and 18%, with 40% for a few goods, from 22 September 2025. Lower rates were expected to cut revenue at first. Strong collections a year later suggest buoyancy, but one festive month cannot settle that question. Read more in GST Council and Article 279A and IGST and the destination principle.
Go deeper
Why it matters for UPSC
GST data show the health of consumption, the strength of imports and the money that flows to States. Questions on fiscal federalism, the GST Council and the revenue effect of rate cuts all need current numbers.
The core idea
Gross GST is made of CGST, SGST and IGST. IGST is levied on inter-State supplies and imports under IGST and the destination principle. Refunds are paid back, mainly to exporters, and what is left is net revenue. Tax rates are set on the recommendation of the GST Council and Article 279A. Since September 2025 the rate structure has mainly two slabs, which is explained in GST 2.0 rate rationalisation.
Numbers and dates to remember
- Gross GST, October 2026: about ₹2.31 lakh crore, up 22.9%
- Domestic: ₹1.59 lakh crore (up 15.8%); imports: ₹72,246 crore (up 42.2%)
- Refunds: ₹27,934 crore (up 6.5%); net: ₹2,03,356 crore
- April to October 2026: gross ₹14.77 lakh crore (up 13.2%), net ₹12.69 lakh crore (up 12.6%)
- GST launched: 1 July 2017
Where to go next
- GST Council and Article 279A: who decides GST rates, and how votes work
- IGST and the destination principle: why imports and inter-State sales carry IGST
- GST 2.0 rate rationalisation: the September 2025 move to two main slabs
Go deeper: Is the October jump a sign of lasting buoyancy?
The case for buoyancy. October was the second month in a row above ₹2 lakh crore. Gross collections from April to October rose 13.2% to ₹14.77 lakh crore, and net collections rose 12.6% to ₹12.69 lakh crore. EY India's Saurabh Agarwal said the numbers reflect "the continued resilience of the Indian economy". Deloitte's Mahesh Jaising said "the GST reform express continues to gather pace, supported by an increasingly strong and resilient revenue base".
The case for caution. Festive months always lift collections, so one month is a weak test of the GST 2.0 rate rationalisation. A big share of the growth came from imports (up 42.2%) rather than from domestic sales (up 15.8%). Import tax is collected as IGST, so it says more about the import bill than about Indian demand; see IGST and the destination principle. Grant Thornton Bharat's Manoj Mishra said "the focus now should be on sustaining domestic revenue growth", along with smoother input tax credit flows and faster refunds.
The State angle. States depend on SGST and on their share of IGST. Maharashtra collected the most in October, ₹35,150 crore (up 13%), while Uttar Pradesh grew 24%. Wide gaps between States feed into the debate on how fair GST is to producing States, which gave up their own taxes in 2017.
What to watch. Whether domestic GST keeps growing after the festive season, how fast refunds are paid, and whether the GST Council revisits rates.
GST Council and Article 279A
The body that recommends every GST rate and rule
In one line: Article 279A, added by the 101st Amendment in 2016, creates the GST Council, a joint forum of the Centre and the States.
Who sits on it
The Union Finance Minister chairs the Council. Members are the Union Minister of State for Finance and the Finance (or other nominated) Minister of each State.
How it decides
The Council recommends tax rates, exemptions, thresholds and model laws. A decision needs three-fourths of the weighted votes present. The Centre's vote counts for one-third and all States together for two-thirds. So neither side can push a change alone. In Union of India v. Mohit Minerals (2022), the Supreme Court said the Council's recommendations are persuasive, not binding on Parliament and State legislatures.
Why it is in the news
The Council approved the two-slab structure that took effect on 22 September 2025, and strong October 2026 collections feed the debate on its next steps.
Where to go next
IGST and the destination principle
Why imports and inter-State sales show up as IGST
In one line: IGST is the GST on inter-State supplies and on imports; the Centre collects it and shares it with the State where the goods or services are consumed.
What it is
Article 269A lets the Centre levy and collect GST on supplies in the course of inter-State trade or commerce, and treats imports as inter-State supplies. The tax is then apportioned between the Centre and the States. GST is a destination-based tax: the State where the goods are consumed gets the revenue, not the State where they are made.
Why it is in the news
In October 2026, IGST was about ₹1.37 lakh crore, more than CGST and SGST together. Tax on imports alone rose 42.2% to ₹72,246 crore. Higher import tax raises gross GST, but it reflects the import bill more than domestic demand.
Where to go next
GST 2.0 rate rationalisation
The September 2025 reform whose revenue effect is now being tested
In one line: From 22 September 2025, most goods and services moved to two GST slabs, 5% and 18%, with a 40% rate for a small set of goods.
What changed
Before the change, GST had four main slabs: 5%, 12%, 18% and 28%. The GST Council, at its meeting on 3 September 2025, approved folding most items into 5% and 18%. A special rate of 40% was kept for a few goods such as sin goods. The aim was simpler compliance and lower prices for common items.
Why it is in the news
Lower rates were expected to reduce revenue at first. A year on, gross collections in October 2026 grew 22.9%, and April to October grew 13.2%. Supporters see buoyancy. Others caution that festive demand and imports explain much of the October rise.
Where to go next
Take the 2 November 2026 quiz: 30 Prelims-style questions with answers