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Oct 31, 2025
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GST collection sparkles despite wholesale cuts; Govt foresees marginal shortfall from budget estimates, upbeat about Oct numbers
India's goods and services tax (GST) revenues have remained robust even after early September's sweeping structural rationalisation that slashed rates on 99% of the taxed items, giving North Block confidence it would eventually have to deal with only a modest and manageable shortfall from FY26 budget estimates.
Officials told ET the continued strength in GST collections demonstrates that the reforms are simultaneously underpinning local consumption and revenue buoyancy for the government.
"We are broadly aligned with budgeted revenues. Any deviation will be modest," a senior official told ET. The GST reforms, effective September 22, reduced the multi-layered tax structure to effectively two broad slabs of 5% and 18%, along with a special 40% rate for select items. The official cited above added that the government strategically timed the implementation date of GST rationalisation with the festive season, helping undergird domestic consumption.
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