GST collections hit Rs 1.86 lakh crore in August 2025; see 6.5% increase YoY – below July’s Rs 1.96 lakh crore

GST collections August 2025: The Goods and Services Tax (GST) collections reached Rs 1.86 lakh crore in August, displaying a 6.5% increase in comparison with August of the earlier yr, in response to official authorities figures launched on Monday.The nation’s gross GST collections amounted to Rs 1.96 lakh crore in the previous month. The GST collections peaked at Rs 2.37 lakh crore in April 2025, marking the best income assortment 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 pattern

Gross GST income hit an all-time excessive of Rs 22.08 lakh crore in the course of the 2024-25 monetary yr, doubling from Rs 11.37 lakh crore in FY21 over a 5-yr interval.In FY25, the common month-to-month collections rose to Rs 1.84 lakh crore, displaying appreciable progress from Rs 1.68 lakh crore in FY24 and Rs 1.51 lakh crore in FY22.The GST framework has skilled vital progress in its taxpayer registration, increasing from 65 lakh taxpayers in 2017 to over 1.51 crore throughout an eight-yr period.The 2024-25 fiscal yr recorded the best-ever gross items and companies tax collections at Rs 22.08 lakh crore, registering a 9.4 per cent increase in comparison with the previous monetary yr.

GST price cuts quickly

PM Narendra Modi introduced GST reforms and price cuts in his Independence Day speech this yr, calling it a “Diwali gift”. The authorities has proposed GST 2.0, that includes two main tax charges: 5% for on a regular basis gadgets and 18% for different merchandise, aiming to simplify taxation for the general public and enterprises.The complete restructuring proposal, suggests eliminating the 12% and 28% brackets, concluding the compensation cess earlier than March, while imposing 40% tax on dangerous merchandise.Essential gadgets together with meals, medicines, medical tools, instructional supplies and day by day requirements comparable to hair oil and toothbrush would appeal to nil or 5% tax, in response to officers. Middle-class shopper items like “ACs, TV sets and refrigerators” would shift to the 18% class, although the taxation strategy for vehicles and cement, presently taxed at 28%, stays unclear.The proposal additionally features a vital discount in GST charges for well being and time period insurance coverage insurance policies, an modification that has been into account for a number of months.