GST Collections Hit Second Highest in October 2025 Despite Tax Cuts, Says Chief Commissioner

GST Collections Hit Second Highest in October 2025 Despite Tax Cuts, Says Chief Commissioner

November 2, 2025

Hold on tight! The State’s GST collections are shining bright, even after some surprising tax cuts. Chief Commissioner of State Tax, Babu A., proudly announced that net GST collections in October 2025 reached a whopping ₹3,021 crore. That's the second highest ever for October! And guess what? This amazing growth came despite the government cutting GST rates on many items and removing cess on sin goods like tobacco. Gross GST collections hit ₹3,490 crore, the third highest for the month since GST began in 2017. What’s the secret behind this success? Babu A. pointed out that for seven months straight—from April to October 2025—net GST collections have beaten last year’s numbers. He said, “Net GST collections rose by 8.77%, demonstrating robust performance despite a decline in tax rates on several goods.” How’s that possible? The tax rate cuts were on big items like consumer essentials, durables, medicines, cement, plus GST on life and medical insurance was removed under GST 2.0 reforms. Even with all these, the GST money kept flowing strong. The State’s own GST (SGST) collections also surged to ₹1,247 crore in October 2025, which is a juicy 6.20% jump from last October. This shows people are spending more, and tax officials are getting better at collecting dues. Year-on-year, SGST grew by 13.42%, proving steady growth. The Integrated GST (IGST) settlement added another ₹1,773 crore to the kitty, up a healthy 10.65% compared with October 2024. This boost came thanks to tight monitoring, quick reconciling, and smooth settlement systems. To sum up, the State’s economy is on fire! Lower tax rates helped people buy more, strategic policies worked like magic, and stronger tax rules made sure no penny was lost. So, October 2025 will be remembered as one of the hottest months ever for GST collections!

Read More at Thehindu

Tags: Gst Collections, Tax Rate Reduction, Economic growth, State Tax, October 2025, Gst 2.0 reforms,

Yuri Michaud

Comments

Leave a reply

Your email address will not be published. Required fields are marked *