India collected Rs 1.96 trillion (£16.76 billion) in gross Goods and Services Tax (GST) in October, about 5 per cent higher than the same month last year, the government said in a statement on Saturday.
After refunds, the government’s net tax collections stood at Rs 1.69 trillion (£14.45 billion), which is 0.6 per cent more than in October 2024, it said.
The government recently reduced taxes on several goods, including shampoo and small cars. The tax cuts took effect from September 22, coinciding with the start of the festival season in India.
Officials said the full impact of these tax reductions on state revenues will become clear in the coming month, as GST is collected with a time lag.
“The higher gross GST collections reflect a strong festive season and higher demand … It is a positive indicator of how both consumption and compliance are moving in the right direction,” said Abhishek Jain, a partner at KPMG.
