Odisha records second highest GST growth rate in October

BHUBANESWAR: The impact of recent GST reforms appears to have begun on a positive note, with Odisha recording its second-highest-ever net GST collections in October. This comes despite reductions in tax rates on several goods announced earlier by the GST Council.The gross GST collection in Odisha rose by around five per cent YoY, higher than the national average growth of 4.6 per cent. The state collected Rs 4,824 crore in gross GST revenue last month, compared to Rs 4,592 crore in October 2024, one of the highest monthly collections in recent years.

Among major GST-earning states, Odisha recorded the second-highest growth in gross GST collection in October, trailing only Gujarat (6 per cent). It was followed by Tamil Nadu and Punjab (4 per cent each) and Maharashtra (3 per cent).The SGST collection for October stood at Rs 1,547 crore, up from Rs 1,303 crore in the same month last year, a sharp 18.68 per cent increase. Officials attributed the growth to increased consumption following rate reductions and to enhanced compliance mechanisms implemented by the state government.

Cumulatively, gross GST revenue up to October in the current fiscal reached Rs 36,072 crore, marking a 3.3 per cent increase year-on-year. The festive season demand and the GST rate cuts introduced by the GST Council in September are believed to have driven the October surge.The increase in domestic GST collection, fueled by festive consumption and tax cuts, is encouraging. The rise in GST refunds also reflects growing confidence in tax administration. The next two months will give a clearer picture of the full impact of the GST rate cuts,” said a senior tax official.

However, the post-settlement SGST revenue up to October this fiscal has seen a five per cent decline, standing at Rs 14,310 crore compared to Rs 15,035 crore during the same period in 2024–25.

According to official sources, the state’s net GST collections,which include State GST (SGST) and IGST settlement, stood at Rs 2,252.78 crore in October, registering a year-on-year (YoY) growth of 10.34 per cent, over Rs 2,041.69 crore collected during the same month last year.