GST Collections Rise 6.5% YoY to ₹1.86 Lakh Crore in August; Maharashtra Remains Top Contributor
GST Rate Cut: Namkeens, Ice Cream, Cheese and Parathas to Get Cheaper From September 22
India’s Goods and Services Tax (GST) mop-up touched ₹1.86 lakh crore in August 2025, marking a 6.5% year-on-year growth, though slightly below July’s ₹1.96 lakh crore. Despite the dip, collections continue to reflect steady momentum in indirect tax revenues, supported by a growing tax base and compliance measures.
The highest-ever GST collection was recorded in April 2025 at ₹2.37 lakh crore, highlighting expanding economic activity. According to Abhishek Jain, Indirect Tax Head at KPMG, collections remain robust, though a slowdown in refunds and sector-specific headwinds—particularly in online real-money gaming—need close monitoring.
In FY25, gross GST collections surged to ₹22.08 lakh crore, nearly double the ₹11.37 lakh crore in FY21. Monthly averages also climbed steadily—from ₹1.51 lakh crore in FY22 to ₹1.84 lakh crore in FY25. Meanwhile, the registered GST taxpayer base has grown from 65 lakh in 2017 to over 1.51 crore in 2025, underlining the system’s expanding reach.
Looking ahead, the government is preparing to roll out “GST 2.0”, announced by Prime Minister Narendra Modi as a Diwali reform measure. The proposal aims to merge the current multiple tax rates into two slabs—5% for essentials and 18% for other goods, while phasing out the 12% and 28% brackets, along with the compensation cess, by March 2026.
Under the new structure, items such as food, medicines, and daily-use products would attract 0–5% tax, while appliances like ACs, refrigerators, and televisions would move to the 18% slab. However, the status of high-tax goods such as automobiles and cement is yet to be finalised. The government is also considering long-awaited GST cuts for health and term insurance, which could provide relief to policyholders and boost the insurance sector.
