Rate cut effect: Oct GST mop-up shows flat growth

THE recent rate cuts have started showing their effects on Goods and Services Tax (GST) collections. Net GST collection was almost flat at 1.69. lakh crore in October 2025, showing a 0.6% year-on-year growth. GST rate cuts came into effect from September 22.

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Total gross collections went up by a meager 4.6% to 1.95 lakh crore against 1.89 lakh crore a year ago.

The deceleration in growth, which was visible from the beginning of the year, got further aggravated by GST reforms, which led to reduction in rates of over 90% of goods and services. In the April-October 2025 period, net GST collections (net of refunds) grew at 7.1% to 12.07 lakh crore. Gross collections during the period grew by 9% to Rs 13.89 lakh crore. The total refund in October rose by 40% year-on-year to 26,934 crore. Historically, GST collections have shown double-digit growth.