FX.co ★ India GST Collections Rise 4.6% in October

India's Goods and Services Tax (GST) collections witnessed a 4.6% year-on-year increase in October 2025. This growth, although slower than the 9.1% rise seen in September, reflects strong economic activity and consumer spending during the festive season, based on recent government data. Following the implementation of GST 2.0, the Ministry of Finance streamlined the multi-layered tax structure into two primary slabs of 5% and 18%, in addition to a special 40% rate for selected items, effective from September 22, 2025. In September, Finance Minister Nirmala Sitharaman conveyed optimism that the GST reforms would enhance consumption and suggested that the stronger-than-expected GDP growth in the first quarter could exceed the projected growth rate of 6.3%–6.8% for the fiscal year 2025/26. The data further revealed that India's economy grew by 7.8% in Q1, the most robust performance in five quarters, driven by increased consumer spending as inflation eased, thereby bolstering household purchasing power.