GST collections August 2025: The Goods and Services Tax (GST) collections reached Rs 1.86 lakh crore in August, showing a 6.5% increase compared to August of the previous year, according to official government figures released on Monday.The country’s gross GST collections amounted to Rs 1.96 lakh crore in the preceding month. The GST collections peaked at Rs 2.37 lakh crore in April 2025, marking the highest revenue collection since its implementation.Abhishek Jain, Indirect Tax Head & Partner, KPMG says, “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.”
GST collections trend
Gross GST revenue hit an all-time high of Rs 22.08 lakh crore during the 2024-25 financial year, doubling from Rs 11.37 lakh crore in FY21 over a five-year period.In FY25, the average monthly collections rose to Rs 1.84 lakh crore, showing considerable growth from Rs 1.68 lakh crore in FY24 and Rs 1.51 lakh crore in FY22.The GST framework has experienced significant growth in its taxpayer registration, expanding from 65 lakh taxpayers in 2017 to over 1.51 crore across an eight-year duration.The 2024-25 fiscal year recorded the highest-ever gross goods and services tax collections at Rs 22.08 lakh crore, registering a 9.4 per cent increase compared to the preceding financial year.
GST rate cuts soon
PM Narendra Modi announced GST reforms and rate cuts in his Independence Day speech this year, calling it a “Diwali gift”. The government has proposed GST 2.0, featuring two primary tax rates: 5% for everyday items and 18% for other products, aiming to simplify taxation for the public and enterprises.The comprehensive restructuring proposal, suggests eliminating the 12% and 28% brackets, concluding the compensation cess before March, whilst imposing 40% tax on harmful products.Essential items including food, medicines, medical equipment, educational materials and daily necessities such as hair oil and toothbrush would attract nil or 5% tax, according to officials. Middle-class consumer goods like “ACs, TV sets and refrigerators” would shift to the 18% category, though the taxation approach for automobiles and cement, currently taxed at 28%, remains unclear.The proposal also includes a significant reduction in GST rates for health and term insurance policies, an amendment that has been under consideration for several months.
