GST Collections Rise 6.5 Per Cent In August To Rs 1.86 Lakh Crore Ahead Of Anticipated Rate Rejig

India’s Goods and Services Tax (GST) revenue touched Rs 1.86 lakh crore in August 2025, registering a 6.5 per cent increase compared with the same month last year, official data showed on Monday (1 September), the Times of India reported.

The figure, however, was lower than July’s Rs 1.96 lakh crore and well below April’s peak of Rs 2.37 lakh crore, the highest since the indirect tax was rolled out in 2017.

In the last financial year (2024–25), GST collections reached an all-time high of Rs 22.08 lakh crore, marking a 9.4 per cent rise from the previous year.

Monthly collections averaged Rs 1.84 lakh crore in FY25, compared with Rs 1.68 lakh crore in FY24.

The taxpayer base has also expanded steadily, rising from 65 lakh in 2017 to more than 1.51 crore in 2025.

Commenting on the trend, Abhishek Jain, Indirect Tax Head & Partner at KPMG, said, as quoted by Times of India, “Broadly, collections have been aligned with the past couple of months, though refund disbursals have seen some reduction. What will be interesting to watch is the impact on collections in the coming months, particularly with the anticipated rate rejig and certain revenue streams stalling, such as those from online real-money gaming.”

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The latest numbers come ahead of the government’s proposed GST 2.0 overhaul, which aims to simplify the tax regime.

The plan includes consolidating the current multi-slab system into two main rates, 5 per cent on essential items and 18 per cent on most others, while scrapping the 12 per cent and 28 per cent brackets.

The compensation cess is expected to be phased out before March, except for a steep 40 per cent levy on harmful products.

Everyday goods like medicines, food, and educational materials will continue to attract a nil or 5 per cent rate, while consumer durables such as TVs, refrigerators, and air conditioners will move into the 18 per cent slab.

The government has also indicated possible rate cuts for health and term insurance.

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