India’s GST collections rise 6.5 per cent in August

India’s Goods and Services Tax (GST) collections rose by 6.5 per cent to Rs 1.86 lakh in August, government data released on Monday showed.

GST collections have been rising steadily to remain above the Rs1.8 lakh crore mark for the eighth month in a row, reflecting the growing economic activity in the country.

The gross domestic revenue grew 9.6 per cent to Rs1.37 lakh crore, while tax from imports dipped 1.2 per cent to Rs49,354 crore in August. GST refunds were down 20 per cent year-on-year to Rs19,359 crore.

Net GST revenue stood at Rs1.67 lakh crore in August 2025, recording 10.7 per cent year-on-year growth.

The data has been released just ahead of the meeting of the GST Council, comprising the Centre and states, which will deliberate on introducing a two-slab GST rate of 5 and 18 per cent on most goods, while a separate higher 40 per cent tax will be levied on sin goods such as cigarettes, tobacco, and sugary drinks as part of the rationalisation exercise. Buoyant tax collections in recent months have helped to strengthen the country’s fiscal position and the macroeconomic fundamentals, which help to ensure stable growth.

Meanwhile, global investment bank and financial advisory firm Morgan Stanley has raised its forecast for India’s GDP growth in 2025-26 on the back of the robust 7.8 per cent growth in the April-June quarter and expects the forthcoming cuts in GST to spur domestic demand, which would offset the decline in exports due to the US tariff hike.

Indo-Asian News Service