November 1, 2025

India’s tax treasure chest is humming! Even after a big shake-up in GST rates slashing taxes on 99% of goods, the government’s GST collections stayed strong in September. The big tax reform on September 22 cut multiple tax layers to just two main rates — 5% and 18% — with a hefty 40% tax on a few select items. Officials say this smart move, perfectly timed with the festive season, fired up local shops and boosted revenue. Sales numbers tell a spicy story: three-wheeler dispatches jumped by 5.5%, two-wheelers sold 2.16 million units, and air-conditioner sales doubled instantly on the first day of the new GST rules. TV sales skyrocketed by 30-35%! Passenger vehicles also rolled out in big numbers, with 372,000 dispatched in September. An insider said, “We are broadly aligned with budgeted revenues. Any deviation will be modest.” The finance folks are thrilled that even with lower tax rates, the demand surged and the revenue stayed solid. The Centre collected Rs 1.89 lakh crore as GST in September, a 9.1% jump from the year before. Experts predict October collections kept the party going. Tax expert Amit Maheshwari from AKM Global added, “The strong GST collections during the festive season clearly show that people are spending and business activity remains healthy.” However, the government and experts caution that after the festival lights dim, collections might ease down. “Collections traditionally remain higher during festival season and December numbers will reflect the correct collection trend once the euphoria of the festivals settles down,” said a senior official. But don’t worry! The official also noted any shortfall will be small and made up by higher-than-expected non-tax revenue. The real picture will emerge after December, when post-festival numbers arrive. Depending on those, the government might tweak budget plans. From November 1, the tax department is using tougher rules for GST registration and verification. These will clamp down on fake bills and stop revenue leaks. Economists like Aditi Nayar from ICRA are optimistic. She said, “Given higher than budgeted non-tax revenues, and savings that typically tend to be found in expenditure relative to the budget estimates, we believe the government may be able to stick to its fiscal deficit target of 4.4% of GDP.” So, the GST story looks bright! The reforms have sparked spending, and the government’s revenue plate looks fuller than expected despite the big tax rate cuts. Now, all eyes will be on post-festival months to see how the revenue dance continues.

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Tags: Gst Collections, Gst reforms, India Budget, Tax rates, Festive season sales, Government Revenue,