Festive season demand keeps GST buoyant despite rate reductions

India’s GST collections continue to show strength even after wholesale rate cuts, demonstrating consumption resilience through the festive period. Government officials say buoyancy reflects domestic demand depth rather than one-off seasonal effects. Higher freight movement, auto deliveries, and urban discretionary spending are supporting stable indirect revenue inflows. Economists believe this supports fiscal math through Q3 FY26 even if global conditions soften or commodity volatility rises again. For equity strategists, resilient GST inflow reduces near-term risk premiums across consumer facing portfolios and strengthens India’s argument of internal demand led earnings momentum.