Kerala’s GST growth hits 27%, doubling national average in October

Kerala’s tax collections continue to climb, with October’s growth rates significantly outpacing the national average. The state generated ₹3,689 crore in GST revenue last month, a 27 per cent increase compared to the ₹2,913 crore collected in October of the previous year. By contrast, national GST revenue grew by 12.8 per cent over the same period. The surge was primarily driven by post-settlement revenue, which includes both the State GST (SGST) and Kerala's share of Integrated GST (IGST). This continues a steady upward trend in the state's collections since the start of the current financial year.

Speaking to WION,Prof Mary George, an economist, said thatthe current government did efficient tax collection at the right time.

She added,“Kerala has recorded its strongest revenue growth in a decade without significant tax increases, while continuing expenditure on social welfare and infrastructure development. The state is heading towards its best revenue growth since the implementation of the Goods and Services Tax.”

Six-month report

The state's collections have trended steadily upward since the start of the current financial year. Between April and September 2026, Kerala's GST revenue after IGST settlement, the amount that actually accrues to the state, rose 18.8 per cent to ₹19,583 crore from ₹16,482 crore a year earlier. Across all states, the increase was 16 per cent, with combined collections touching ₹5.79 lakh crore.

Kerala's own collections grew 13.8 per cent to ₹8,970 crore, against national growth of 5.8 per cent. Several large states fared worse: own state collections fell 2 per cent in Tamil Nadu, 1 per cent in West Bengal and 4 per cent in Delhi. September also recorded steady growth. Post-settlement revenue rose 9 per cent to ₹3,451 crore, while own state collections increased 8 per cent to ₹1,481 crore.