India’s central and state governments together collected ₹1.86 trillion in Goods and Services Tax (GST) revenue in August 2025, reflecting a 6.5% year-on-year increase. However, this marked the second slowest growth rate of the current fiscal year, indicating a moderation in momentum.
Officials attributed the slowdown to tariff-related uncertainties with the US and muted consumer demand during the monsoon season.
After accounting for tax refunds, the net GST revenue stood at ₹1.67 trillion, registering a 10.7% increase from August last year. This suggests stronger underlying tax compliance and collections despite broader economic headwinds.
Refunds issued in August totaled ₹19,359 crore, which is about 20% lower than the amount disbursed in the same period last year. This marks a sharp contrast to July, when GST refunds surged by 67% year-on-year.
The gross GST revenue for August was distributed as follows:
These figures underline the continued stability of indirect tax revenue despite sectoral slowdowns.
Despite the August slowdown, the average monthly GST collection in FY25 so far has remained around ₹2 trillion, showcasing robust overall performance in indirect tax mobilisation. The August figures reflect business activity from July.
Also Read: Govt to Streamline GST with 5% and 18% Rate: Plan to Introduce New 40% Rate on Sin Goods
With an eye on simplifying compliance and easing consumer tax burdens, both central and state governments are considering a revamp of the GST structure. The GST Council, India’s apex body for indirect tax policy, is scheduled to meet later this week to deliberate on potential reforms.
Key proposals expected to be discussed include:
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Published on: Sep 2, 2025, 10:45 AM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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