Daijiworld Media Network - New Delhi
New Delhi, Sep 1: India’s Goods and Services Tax (GST) revenue rose by 6.5% year-on-year to touch Rs 1.86 lakh crore in August 2025, maintaining the robust trend of crossing the Rs 1.8 lakh crore mark for eight consecutive months, government data revealed on Monday.
The steady rise in collections signals resilient domestic economic activity, despite headwinds from global trade tensions.
Key Highlights from August 2025 GST Data:
• Gross GST revenue: Rs 1.86 lakh crore
• Net GST revenue (post-refunds): Rs 1.67 lakh crore — up 10.7% from August 2024
• Domestic revenue: Rs 1.37 lakh crore — up 9.6%
• GST on imports: Rs 49,354 crore — down 1.2%
• GST refunds issued: Rs 19,359 crore — down 20% YoY
The data comes just ahead of the upcoming GST Council meeting, where significant tax reforms are on the agenda. The Council is expected to discuss a two-rate structure — with 5% and 18% slabs for most goods — and a 40% sin tax on items such as tobacco, sugary drinks, and cigarettes as part of a long-planned rationalisation exercise.
Fiscal Stability and Global Endorsement
The sustained growth in tax collections is bolstering India’s fiscal strength and macroeconomic stability, reinforcing confidence among global investors and policymakers alike.
Adding to this optimism, Morgan Stanley has raised India’s GDP forecast for 2025–26 from 6.2% to 6.7%, citing the strong 7.8% growth in the April–June quarter and expectations of GST cuts boosting domestic consumption.
“The impending GST cuts, festive tailwinds, and improving rural demand are likely to drive private consumption. Even with the drag from declining exports, the net growth effect should remain balanced,” Morgan Stanley noted in a recent report.
The investment bank believes potential growth from tax cuts could offset the 50-basis-point drag from slowing external demand, particularly in light of new US tariffs on Indian goods.
With the Centre looking to simplify GST compliance and rationalise rates, August's strong figures not only reflect healthy consumption trends but also pave the way for reforms aimed at fuelling sustained, inclusive growth.