Odisha’s GST Growth Defies Trends, Signals Economic Revival Post-Reforms
State records second-highest-ever GST collection in October amid national slowdown and tax rate cuts
Bhubaneswar: Odisha’s fiscal momentum continues to gain strength as the state recorded its second-highest-ever net GST collection in October, signaling resilience and renewed consumption despite recent nationwide tax rate reductions. The development suggests that the impact of the Goods and Services Tax (GST) reforms, introduced by the GST Council in September, has been largely positive for the state’s economy.
According to official data, Odisha’s net GST collection — which includes State GST (SGST) and Integrated GST (IGST) settlement — stood at ₹2,252.78 crore in October 2025, marking a robust 10.34% year-on-year (YoY) growth compared to ₹2,041.69 crore collected during the same month last year. The surge comes at a time when several other states have reported only moderate or stagnant growth following the recent tax rationalizations.
Odisha’s gross GST revenue also showed impressive growth, rising around 5% YoY to ₹4,824 crore in October, up from ₹4,592 crore in October 2024. This growth rate is higher than the national average of 4.6%, placing Odisha among the top-performing states in the country. Among major GST-earning states, Odisha ranked second in gross GST growth during the month, behind only Gujarat (6%), and ahead of Tamil Nadu and Punjab (4% each) and Maharashtra (3%).
The state’s SGST collections alone stood at ₹1,547 crore in October — an 18.68% jump from ₹1,303 crore during the same month last year. Officials from the state finance department attributed this surge to increased consumer spending during the festive season and to improved tax administration measures, including advanced data analytics for compliance monitoring and stricter enforcement against evasion.
The government’s efforts to widen the tax base and encourage voluntary compliance have begun to yield results. “Odisha’s strong GST performance reflects a healthy balance between tax reforms and revenue generation. The recent rate reductions have stimulated consumption without significantly impacting revenue inflow, showing that compliance and growth can coexist,” said a senior finance official.
Cumulatively, Odisha’s gross GST collection for the first seven months of the current financial year (up to October) reached ₹36,072 crore — a 3.3% increase compared to the same period last fiscal. This steady rise, though moderate, underscores the state’s stable industrial and trade activity. The festive season, which typically boosts retail and manufacturing sales, along with GST rate cuts on select goods and services, played a crucial role in driving last month’s growth.
Experts suggest that Odisha’s growth pattern reflects broader economic optimism, with sectors like construction, consumer goods, and logistics showing visible recovery. “The October GST figures are a strong signal that Odisha’s domestic economy is responding well to policy reforms. The rise in collections also shows that business activities, particularly in small and medium enterprises, are bouncing back,” said economist and tax analyst S. Mishra.
However, not all indicators point upward. Despite the October surge, the post-settlement SGST revenue for the current fiscal (up to October) stood at ₹14,310 crore, a 5% decline from ₹15,035 crore during the same period last year. Officials attributed this dip to higher refunds and input tax credits following the GST rate cuts, which they expect to normalize in the coming months.
The Finance Department remains optimistic that the momentum will sustain in the next quarter as the effects of festive spending, infrastructure investments, and ongoing compliance drives continue to influence revenue growth. “The increase in domestic GST collection, fueled by consumption and tax rationalization, is encouraging. The rise in GST refunds also reflects growing confidence in tax administration. The next two months will provide a clearer picture of the long-term impact,” the official added.
With Odisha emerging as a consistent performer in GST revenue generation, the latest figures reaffirm the state’s growing economic resilience and effective fiscal governance — setting a benchmark for other states navigating the post-reform GST landscape.
