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GST collections jump 22.9% to Rs 2.31 lakh crore in October, but imports supply nearly half the rise
Gross GST collections for October 2026 were Rs 2,31,290 crore, up 22.9%, with net revenue at Rs 2,03,356 crore. Imports rose 42.2% and supplied nearly half the increase, while domestic revenue grew 15.8%. A weak base after last year's rate cuts also flatters the figure.
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India's gross Goods and Services Tax collections rose 22.9% to Rs 2,31,290 crore in October 2026, up from Rs 1,88,125 crore a year earlier, according to provisional data released by the Union Finance Ministry on 1 November. It is the second-highest monthly collection since GST began in July 2017. After refunds of Rs 27,934 crore, net revenue was Rs 2,03,356 crore, up 25.6% from Rs 1,61,900 crore in October 2025.
The headline looks like a broad-based surge, but the split beneath it is more useful than the total. Imports supplied close to half of the year-on-year increase. Of the Rs 43,165 crore added to gross collections, about Rs 21,450 crore came from tax on imported goods, which grew 42.2% to Rs 72,246 crore, against 15.8% growth in domestic revenue. For a tax that is meant to track what Indians buy and sell at home, that is the number to read first.
Where the money came from
The ministry's breakdown for October 2026 is below. All figures are provisional and may be revised.
| Component | October 2026 (Rs crore) | Growth on October 2025 |
|---|---|---|
| Gross domestic revenue | 1,59,044 | 15.8% |
| of which CGST | 42,935 | – |
| of which SGST | 51,340 | – |
| of which IGST | 64,769 | – |
| Revenue from imports | 72,246 | 42.2% |
| Gross total | 2,31,290 | 22.9% |
| Refunds | 27,934 | 6.5% |
| Net total | 2,03,356 | 25.6% |
Over April to October of the current financial year, gross collections were Rs 14.78 lakh crore, up 13.2%, and net collections were Rs 12.69 lakh crore, up 12.6%. The gap between the two halves of the tax is wider over the seven months: domestic gross revenue grew 7.4% to Rs 10.33 lakh crore, while import-linked collections grew 29.3% to Rs 4.44 lakh crore. In both October and the year so far, the integrated GST collected on imports is larger than the integrated GST collected on domestic transactions. Gross growth in September was 14.7% on collections of about Rs 2.04 lakh crore, so October's 22.9% is a clear step up.
Why the October number flatters
Two things sit behind the jump, and neither is visible in the headline. The first is the base. October 2025 was the first full month after the GST rate cuts of 22 September 2025, and collections that month grew only 4.6%, according to the ministry's data a year ago. A low base lifts any growth rate calculated against it, so a part of the 22.9% is arithmetic and not new momentum.
The second is timing. Domestic GST for a month is largely paid on the returns filed by the 20th of the following month, so the domestic figure released for October mostly reflects sales made in September. Tax on imports is different: it is paid at customs when the goods are cleared, so the import figure reflects October's shipments. The two halves of the headline therefore describe slightly different periods. It also means that the festive buying around Diwali, which falls on 8 November this year, will show up mainly in the collections released on 1 December and 1 January.
The data do not say what drove imports. A rise in import tax can come from larger volumes, higher prices, a different mix of goods or a weaker rupee, and the release separates none of them. Crude oil, petrol and diesel are outside GST, so the higher fuel price does not explain it directly. Tax practitioners read the pattern in two ways. Some see imports of raw materials and intermediate goods for expanding factories. Others see continued dependence on imports in sectors where domestic supply has not caught up. The next few months of data on import categories will show which reading is closer.
Refunds, states and what to watch
Refunds are the quiet part of the story. October refunds rose only 6.5%, to Rs 27,934 crore, with domestic refunds up 9.8% to Rs 14,007 crore and export refunds up 3.4% to Rs 13,927 crore. Over April to October, however, refunds rose 16.9% to Rs 2.08 lakh crore, faster than the 13.2% growth in gross collections. The effect is that net domestic revenue grew about 6% over the seven months, below the 7.4% growth in gross domestic revenue. Faster refunds are not bad in themselves, since they reflect exporters being paid and inverted duty structures being corrected, but they mean the government keeps less of each rupee collected.
State-wise domestic collections show an uneven picture. Maharashtra remained the largest contributor at Rs 35,150 crore, up 13%, followed by Karnataka at Rs 15,922 crore, up 18%, and Gujarat at Rs 13,516 crore, up 16%. Uttar Pradesh and Bihar each grew 24%, Madhya Pradesh 29% and Assam 47%. Tamil Nadu, with Rs 11,661 crore, grew just 3%, the weakest among the large states, and Himachal Pradesh recorded a 2% fall and Sikkim a 28% fall.
Three things are worth watching in the coming releases. One is whether import-linked collections stay above 30% growth, or fall back as the base effect fades. A second is whether domestic revenue growth, which averaged 7.4% for the seven months, moves closer to October's 15.8% once festive sales enter the returns. The third is the pace of refunds, since faster refunds with slower net growth would tighten the room the Centre and the states have to spend. The GST Council will read the November and December figures against these markers.
This article is for information and is not investment advice.
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About the Author
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Amita Sahani
Staff Writer
Amita Sahani writes for Wirony. Every story under this byline is reviewed and approved by an editor before it is published, and corrections are made openly.
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