GST collections reach ₹1.86T in August, up 6.5% YoY
What's the story
India's Goods and Services Tax (GST) collections for August stood at ₹1.86 lakh crore, a year-on-year increase of 6.5%, according to government data released on Monday. This is a slight decline from the previous month's collection of ₹1.96 lakh crore, which had registered a 7.5% growth over the same period last year. The gross domestic revenue also witnessed a similar trend with an annual growth rate of 6.6%, reaching ₹1.36 lakh crore in August compared to same time last year.
Record achievement
Record high GST collections recorded in April
The GST collections had hit a record high of ₹2.37 lakh crore in April 2025. This was the highest collection since the implementation of the tax reform in July 2017. The increase in collections is typically attributed to improved compliance and economic growth, with more businesses coming under the GST net and contributing to revenue generation for the government, although these reasons are not explicitly detailed in the provided sources.
Economic barometer
Economic recovery post-pandemic
GST collections are considered a key indicator of economic activity in India. The tax is levied on the supply of goods and services, making it a direct reflection of consumer spending and business growth. Recent months have shown increased GST collections, suggesting potential economic recovery post-pandemic, with increased consumption and business activities driving revenue growth. The government is now readying GST 2.0. The overhaul will move from the existing four-rate structure to just two rates: 5% and 18%.