GST inflow rises by double digits 3rd month in a row

In the third consecutive month, India's Goods and Services Tax (GST) collections have surged by double digits, marking a 14.8% rise to Rs 1,99,853 crore, according to the latest data. This growth was driven by a 29% surge in import-related collections, amounting to Rs 62,604 crore, while domestic transactions contributed Rs 1,37,249 crore.

The uptick is attributed to higher costs for commodities such as crude, fertiliser, and bullion, coupled with increased consumption of white goods and automobiles, which partially offset the September 2025 rate cuts. Despite tariff headwinds and geopolitical tensions, the GST collections signal a robust economy, with no apparent slowdown in economic activity or consumption.

Experts, including MS Mani from Deloitte India and Saurabh Agrawal from EY India, suggest that the GST Council should consider further easing input tax credit restrictions, streamlining audits, and reducing compliance burdens to bolster business performance. The rise in exports, particularly in electronics, mobile phones, and automobiles, underscores the positive impact of the government's manufacturing-focused policies, indicating a strengthening position in global value chains.

However, the parallel increase in imports highlights the ongoing reliance on external sourcing in specific sectors, emphasizing the necessity for a balanced approach towards localisation and import substitution.