GST Collections Rise 6.5% in August, Stay Above ₹1.8 Lakh Crore for Eighth Month
India’s GST collections rose 6.5% YoY to Rs 1.86 lakh crore in August 2025, staying above Rs 1.8 lakh crore for the eighth straight month. Strong domestic demand and steady revenues come ahead of the GST Council meet, where major rate rationalization and next-gen reforms are on the agenda.
- Republic Business
- 2 min read
India’s Goods and Services Tax (GST) revenues touched Rs 1.86 lakh crore in August 2025, up 6.5% year-on-year, marking the eighth consecutive month that collections have remained above the Rs 1.8 lakh crore threshold. The steady inflows highlight resilient domestic demand despite global trade headwinds.
According to Finance Ministry data, domestic GST collections grew 9.6% to Rs 1.37 lakh crore, while revenue from imports fell 1.2% to Rs 49,354 crore. Refunds dropped sharply by 20% to Rs 19,359 crore, helping push net GST revenue up 10.7% to Rs 1.67 lakh crore.
All four components — Central GST, State GST, Integrated GST and cess — reported year-on-year growth. In the first five months of FY26, gross GST collections totalled nearly Rs 10 lakh crore, compared to Rs 9.13 lakh crore in the same period a year ago.
The broader trajectory has been steadily upward: annual collections have climbed from Rs 11.37 lakh crore in FY21 to Rs 20.18 lakh crore in FY24, before hitting a record Rs 22.08 lakh crore in FY25. The average monthly mop-up last fiscal stood at Rs 1.84 lakh crore — the highest since GST’s rollout in 2017.
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Also Read: GST Reforms To Aid Consumption & Sustain Growth, Tariff Risks Cloud Outlook: NSE | Republic World
The August numbers come just days before the GST Council’s meeting on September 3–4 in New Delhi, where the Centre and states are expected to discuss a sweeping rationalization plan. The proposal under review could streamline rates into two slabs — 5% and 18% — while raising levies on sin goods such as tobacco, cigarettes and sugary drinks to 40%.
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Strong revenues have also bolstered the fiscal outlook. Global investment bank Morgan Stanley recently upgraded India’s FY26 GDP forecast to 6.7% from 6.2%, citing robust tax collections and a 7.8% GDP print for the April–June quarter. It noted that GST rate cuts, festive demand, and a rural recovery could cushion risks from softer exports in the wake of US tariff hikes.
It may be recalled that Prime Minister Narendra Modi, in his Independence Day address, signalled “next-gen GST reforms” to be rolled out by Diwali, with the upcoming Council meeting likely to set the stage for those changes.