October GST Collections Rise 22.9% to Rs 2.31 Lakh Crore: What the Numbers Tell Us
India's gross GST collection for October 2026 was about Rs 2.31 lakh crore. This is 22.9% higher than in October last year. ("Gross" means the total collected before refunds are paid back to businesses.)
For the first seven months of the financial year (April to October 2026), gross GST collection was Rs 14.78 lakh crore, which is 13.2% higher than the same period last year.
Maharashtra collected the most GST in October, about Rs 35,150 crore. Karnataka and Gujarat came next.
Some states and Union Territories, including Sikkim and Ladakh, collected less GST in October than a year ago.
The strong growth comes about a year after GST 2.0, the change from four main tax slabs to two main slabs (5% and 18%) that took effect on 22 September 2025.
Goods and Services Tax (GST): Constitutional Framework and Structure
The Goods and Services Tax (GST) is one single tax on the sale of goods and services across India. It started on 1 July 2017 and replaced many old central and state taxes, such as central excise duty, service tax and state VAT. It became possible through the 101st Constitutional Amendment Act, 2016. GST is a dual tax: the Centre and the states both tax the same sale, and the money is shared between them.
The state-wise ranking (Maharashtra, Karnataka, Gujarat on top) shows where business activity and consumption are highest. A fall in small units like Sikkim and Ladakh matters more for them, because they have a small tax base and depend heavily on a few sources of revenue.
GST Rate Rationalisation (Two-Rate Structure)
GST rate rationalisation means making the GST rate structure simpler: fewer slabs, lower tax on common goods, and fixing cases where similar goods were taxed differently. In September 2025, India moved from four main slabs (5%, 12%, 18% and 28%) to two main slabs: 5% (merit rate) and 18% (standard rate). A special 40% (demerit rate) applies to a short list of harmful and luxury goods. This change is often called GST 2.0.
Many people feared that cutting rates in GST 2.0 would reduce GST revenue. October 2026's 22.9% growth in gross collection, and 13.2% growth for April to October, suggest that demand and compliance have grown enough to make up for lower rates. One point to keep in mind: because the old compensation cess has now ended for most goods, comparing this year's totals with last year's needs care about what is included.
- Gross GST collection, October 2026: about Rs 2.31 lakh crore, up 22.9% year on year
- Gross GST collection, April to October 2026: Rs 14.78 lakh crore, up 13.2% year on year
- Top state in October 2026: Maharashtra (about Rs 35,150 crore), followed by Karnataka and Gujarat
- States/UTs with a sharp fall in October collections: Sikkim and Ladakh, among others
- GST began on 1 July 2017; constitutional basis: 101st Amendment Act, 2016
- GST 2.0 (two main slabs, 5% and 18%, plus a 40% demerit rate) in force from 22 September 2025
- GSTR-3B monthly return and tax payment due by about the 20th of the following month