Karnataka has emerged as the fastest-growing large state in Goods and Services Tax (GST) collections following the September 22 rate rationalisation, topping the list of major states in YoY revenue growth. According to a statement from the Press Information Bureau (PIB), Karnataka, along with Maharashtra, Gujarat, Tamil Nadu and Haryana, contributed over 40% of the country’s total GST revenue, underscoring its importance as a key consumption and production hub.
Karnataka and Telangana led the growth charts with a 10% rise in GST collections in October compared to the same month last year. Karnataka’s collections climbed to Rs 14,395 crore from Rs 13,081 crore in October 2024, while Telangana reported Rs 5,726 crore versus Rs 5,211 crore a year earlier.
Among other large states, Gujarat registered 6% growth (Rs 12,113 crore vs. Rs 11,407 crore), Tamil Nadu recorded a 4% rise (Rs 11,588 crore vs. Rs 11,188 crore), and Maharashtra clocked a 3% increase (Rs 32,025 crore vs. Rs 31,030 crore). Odisha, Bihar and Uttar Pradesh also saw positive momentum, posting growth of 5%, 3% and 2%, respectively.
Overall, GST collections for October 2025 stood at Rs 1,95,936 crore, up 4.6% from Rs 1,87,346 crore in the same month last year. The government credited the festive-season demand and the early impact of GST rate rationalisation for the uptick.
The rationalisation initiative, rolled out in late September, cut the earlier four-slab structure — 5%, 12%, 18% and 28% — to two main slabs of 5% and 18%, aimed at simplifying compliance and boosting efficiency.
