GST collection: In the midst of the announcement of GST Reform, this is the news for India, which was eagerly waiting. Due to this, US President Donald Trump, who imposed 50 percent high tariff over India, is sure to get chilly. The gross GST collection increased by 6.5 percent to more than Rs 1.86 lakh crore due to high domestic revenue. This information was received from the official data released on Monday. The GDP and Services Tax (GST) collection was Rs 1.75 lakh crore in August 2024. The collection was Rs 1.96 lakh crore last month. In August this year, gross domestic revenue increased by 9.6 percent to Rs 1.37 lakh crore, while the import tax declined by 1.2 percent to Rs 49,354 crore. The GST refund declined by 20 percent to Rs 19,359 crore on an annual basis. Pure GST revenue stood at Rs 1.67 lakh crore in August 2025, which is a 10.7 percent increase on an annual basis.

These figures were released just two days before the meeting of the GST Council of the Center and the states. In this meeting, discussions will be made to rationalize the rates and reduce the number of tax slabs.

Big benefits of GST reform

The long -term success of the Goods and Services Tax (GST) depends on how it adopts a single nationwide tax rate and adopting two tax rates of five and 18 percent in the proposed GST reform can be a step taken in that direction. This assessment has been introduced in a report.

The report released on Monday by the idea group Think Change Forum says that even though the rate of 40 percent has been determined for luxury and harmful products in the proposed reforms, doing so will open the path of expansion of rates and affect the purpose of simplifying the tax system. According to the report, the maximum indirect tax rate should be limited to 18 percent including cess. By doing this, the discrepancy such as the fee structure will be removed, illegal markets will be curbed, the burden of controversy and compliance will be reduced and the credibility of the GST system will be restored.

The possibilities of a two-day tax system of five and 18 percent will be considered in the meeting of the GST Council headed by Union Finance Minister Nirmala Sitharaman on 3-four September. The council consists of Finance Minister of all states and union territories and representatives of the Central Government. In this meeting, recommendations made by groups of ministers (GOMs) will also be considered. These ministers are relating to genuine tax rates, compensation cess and discount on health and life insurance premiums.

The report also states that cutting tax rates is not a decrease in revenue collection, but a part of the growth strategy. This is possible to increase consumption, better compliance and long -term increase in revenue collection, which will strengthen India’s goal of becoming a developed economy. Recommending to ensure transparency in the context of cess and overloads on luxury and harmful products, the report proposes to create a cessmore manual, which will clarify the process of levying, adjusting or abolishing cess.

Learn from old mistakes in GST 2.0

The report says that alternative measures of indirect tax revenue, such as levying taxes at maximum retail price or giving insurance from GST without input tax credit, distort the original form of this tax system and puts hidden burden on consumers.

The General Secretary of the Think Change Forum Ranganath Tea released the report saying, “GST reforms should be implemented not only symbolic, but also in public interest. A solid initiative is necessary towards transparency and estimation.” The author of the report and Professor Nilanjan Banik at the University of Mahindra said, “The old mistakes should not be repeated in GST 2.0. Today, two rates and tomorrow are only one rate of real improvement. This will ensure better compliance, low deformity and permanent revenue growth.”

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