The government said on Monday that the Goods and Services Tax (GST) collection in August 2025 stood at Rs 1.86 lakh crore. There has been an increase of 6.5% compared to August last year. However, GST collection remained lower as compared to July 2025 as GST collection in July was Rs 1.96 lakh crore. In April this year, GST made a record of Rs 2.37 lakh crore, which is the highest collection till date.
Abhishek Jain, head of indirect tax at KPMG, said, ‘Like the last few months, this time too the collections have been good, but there has been some decline in refunds. The impact of changes in GST rates and decline in income from sectors like online gaming will have to be seen in the coming months.
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GST trend
GST collection in the financial year 2024-25 reached Rs 22.08 lakh crore, which is 9.4% more than last year. Five years ago in 2020-21 it was Rs 11.37 lakh crore. The average collection for the entire month this year was Rs 1.84 lakh crore, which was Rs 1.68 lakh crore in 2023-24 and Rs 1.51 lakh crore in 2022-23. The number of taxpayers registered in GST has also increased from 65 lakh in 2017 to 1.51 crore in 2025.
Major changes in GST
Prime Minister Narendra Modi announced GST reforms on Independence Day, calling it a ‘Diwali gift’. The government is preparing to introduce GST 2.0, which will have two main tax rates: 5% on everyday items and 18% on other products. It is proposed to eliminate the rates of 12% and 28%. There will be a 40% tax on harmful products.
There will be 0% or 5% tax on essential items like food items, medicines, medical equipment, books, hair oil and toothbrushes. Middle class goods like AC, TV and fridge will come in 18% tax slab. The new rates for automobiles and cement, which are currently taxed at 28%, are not clear. Apart from this, there is also a proposal to reduce GST on health and term insurance policies.
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GST 2.0 is an attempt to further simplify the tax system, which is expected to benefit common people and businesses.
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