GST collection in August 2025 stood at ₹1.86 lakh crore, marking a year-on-year increase of 6.5%. There was a slight decline compared to July 2025. Gross Domestic Revenue was also recorded at ₹1.36 lakh crore. Prime Minister Modi has announced the next generation of GST reforms, to be implemented by Diwali.
August GST Collection: India's GST collection in August 2025 was registered at ₹1.86 lakh crore, a 6.5% increase compared to the previous year. However, there was a slight dip compared to July 2025. Gross Domestic Revenue also amounted to ₹1.36 lakh crore. Prime Minister Narendra Modi announced on Independence Day that the next phase of GST reforms would be implemented by Diwali, which will provide relief to the general public and small businesses.
GST Returns to Normal Levels in August
The marginal decrease in August compared to July was attributed to normal economic activities. The collection in July had been higher due to increased festive shopping and business transactions. In August, this figure returned to normal levels. Despite this, the GST collection in August was better than in the previous year.
This year, GST collection reached its highest historical level in April. In April, the government collected ₹2.37 lakh crore in GST, which remains a record to date. In this light, a trend of stability and growth in the government's tax revenue has been observed since the beginning of the year.
Domestic Revenue and Import Tax Trends
Gross Domestic Revenue (GDR) also saw an increase in August 2025. The total domestic revenue in August stood at ₹1.36 lakh crore, a 6.6 percent increase compared to the previous year. Meanwhile, import tax experienced a slight decline. Year-on-year, import tax decreased by 1.2 percent to ₹49,354 crore. This figure indicates a marginal reduction in tax revenue from imports.
Preparation for GST Reforms
Prime Minister Narendra Modi made a significant announcement regarding GST reforms on Independence Day. He stated that the next phase of GST reforms would be presented to the public by Diwali. The objective of these reforms is to further simplify and enhance the effectiveness of the tax system. The Prime Minister also mentioned that GST has completed eight years since its implementation, and now is the time to improve it further.
Relief for Small and Medium Businesses
Small and medium businesses will be a key focus in the GST reforms. These reforms are expected to provide tax relief to traders and the general public. Additionally, there are plans to increase transparency in the tax system and control profiteering.
According to officials, many opposition-ruled states are also in favor of GST reforms. They desire more rational GST rates that would benefit both traders and the general public. Furthermore, states want to ensure that the benefits are not limited to a select few.
