Delhi GST Revenue Falls 4.5% In October Despite Festive Season; Vehicle Registrations Hit All-Time High

Despite the central government's reduction in GST rates aimed at boosting consumption, the Delhi government witnessed a surprising shortfall in revenue collection during the festive season. For the first time, GST collection in October (festive period) dropped by approximately 5 per cent compared to the previous year.

Revenue Shortfall And Official Stance

Officials had anticipated a significant surge in revenue during the October festive window, but the expected numbers did not materialise.

The Figures: In October of the current financial year (2025-26), the total GST and VAT collection stood at Rs 3,843.75 crore, compared to Rs 4,027.91 crore in October of the previous financial year (2024-25). This represents a decline of roughly Rs 184 crore.

The Cause: The reduction in tax rates on various goods, implemented on September 22, is cited as a factor. However, GST officials maintain that the impact of these cuts cannot be judged by a single month's performance. They state that the effects will be gradual and expect the revenue picture to stabilise and improve by the end of the year.

Budgetary Context

The Delhi government presented a budget of Rs 100,000 crore for the financial year 2025-26.

Targets: The total tax collection estimate is Rs 68,700 crore.

Dependency: GST and VAT are crucial to the state's finances, accounting for 70 per cent of the total tax collection (projected at Rs 49,000 crore). Last year, the government received Rs 43,000 crore from these sources.

Cumulative Performance: From April 1 to October 31, 2025, the total revenue collected is Rs 26,321.83 crore, compared to Rs 25,104 crore in the same period last year. This indicates a modest overall growth of only 5 per cent so far this year.

Record-Breaking Vehicle Registrations

While tax revenue dipped, the GST reduction triggered a massive boom in vehicle sales. October 2025 saw all previous registration records in Delhi broken.

Total Registrations: 114,209 vehicles were registered in October alone, surpassing the previous record of 87,000 set in November of the last year.

Breakdown: The surge was led by two-wheelers (82,728) and cars (22,625).

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Statistical Breakdown Of Revenue Collection

1. Comparative Collection: October (Month-on-Month) The festive month saw a 4.5 per cent decline in overall collection.

2. Cumulative Collection: April 1 to October 31 Overall collection for the fiscal year shows a marginal increase.

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