New Delhi, August 2025 – India’s central and state governments collected ₹1.86 trillion in Goods and Services Tax (GST) revenue in August 2025, up 6.5% year-on-year. While healthy, this marks the second slowest growth of the fiscal year, reflecting moderation in economic momentum.
Officials attributed the slower pace to tariff-related uncertainties with the US and muted consumer demand during the monsoon season.
Net GST Revenue Shows Stronger Growth
After refunds, net GST revenue stood at ₹1.67 trillion, recording a 10.7% rise compared to August 2024. Refunds issued were ₹19,359 crore, about 20% lower year-on-year, in contrast to July’s surge of 67%.
August 2025 GST Revenue Breakdown
- Central GST (CGST): ₹31,474 crore
- State GST (SGST): ₹39,736 crore
- Integrated GST (IGST): ₹83,964 crore (including inter-state trade & imports)
- GST Compensation Cess: ₹11,792 crore
Despite the August dip, average monthly collections in FY25 remain around ₹2 trillion, underscoring stable indirect tax mobilisation.
Policy Overhaul on the Horizon
The GST Council is set to meet later this week, with reforms on the agenda, including:
- Rationalising GST rates
- Reducing tax slabs
- Simplifying return filing for small businesses
Summary
GST collections in August 2025 rose to ₹1.86 trillion, up 6.5% YoY, though growth slowed due to US tariff concerns and weak consumer demand. Net GST revenues surged 10.7% after refunds, highlighting strong compliance. With the GST Council meeting scheduled this week, key reforms such as rate rationalisation, slab reduction, and simplified compliance are expected to be discussed.
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