New Delhi, Sept 2,2025| SKY LINK TIMES
India’s GST collections rose 6.5% year-on-year to ₹1.86 lakh crore in August 2025, according to official data released on Monday. This marks the eighth consecutive month of revenues staying above the ₹1.8 lakh crore level, highlighting strong domestic consumption and resilient economic activity.
Key Highlights of August 2025 GST Collections
- Gross domestic GST revenue: ₹1.37 lakh crore (+9.6% YoY)
- GST from imports: ₹49,354 crore (–1.2% YoY)
- Refunds: ₹19,359 crore (–20% YoY)
- Net GST revenue: ₹1.67 lakh crore (+10.7% YoY)
All four components—Central GST, State GST, Integrated GST, and Cess—recorded growth compared to August 2024.
April–August FY26 Performance
For the first five months of FY26, gross GST collections touched ₹10 lakh crore, a 9.9% increase over the ₹9.13 lakh crore collected during the same period last year.
The upward trend continues from recent years:
- FY21: ₹11.37 lakh crore
- FY24: ₹20.18 lakh crore
- FY25 (record): ₹22.08 lakh crore (avg. ₹1.84 lakh crore per month, highest since GST launch in July 2017)
GST Council Meeting to Discuss Rate Rationalisation
The August data comes just ahead of the GST Council meeting on Sept 3–4 in New Delhi, where the Centre and states are expected to deliberate on a major rate rationalisation. Proposals include:
- Moving most goods to a two-slab rate structure (5% and 18%).
- Imposing a higher 40% GST rate on “sin goods” such as tobacco, cigarettes, and sugary beverages.
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Boost to Fiscal Position and Growth Outlook
The buoyant tax revenue has strengthened India’s fiscal outlook. Morgan Stanley revised its FY26 GDP growth forecast to 6.7% (from 6.2%), citing robust GST collections, 7.8% GDP growth in April–June, and strong domestic demand.
It added that upcoming GST cuts, festive season demand, and rural recovery could help offset external pressures, including weaker exports due to recent US tariff hikes.
“Next-Gen GST Reforms” by Diwali
Prime Minister Narendra Modi, in his Independence Day address, hinted at upcoming “next-gen GST reforms”, expected to be rolled out by Diwali 2025. The forthcoming Council meeting may set the stage for these changes.
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