In November, India’s gross goods and services tax (GST) collections marked the lowest monthly mop-up since February 2024.
The collection on a year-on-year basis has dropped by 0.7% as per the official data. The moderation specifies the effect of rate rationalisation with taxes on most items of consumption being dropped.
In November, the net GST collections surged by a modest 1.3% year on year to Rs 1.5 lakh crore. In the same month of the previous year, the net GST collections stood at Rs 1.52 lakh crore.
This increase was due to a decrease in refunds issued to taxpayers in November. The total refunds for the month were Rs 18,954 crore, reflecting a decline of 4% compared to the same period last year.
The biggest GST reform in September was implemented by India. It reduces the GST tax slabs from four to two. The 12 and 28% tax slabs are removed, and most taxable items were brought under 5 and 18% slabs. For a select sin or luxury goods, an additional slab of 40% has been formed.
On September 22, the GST 2.0 was introduced, ahead of the festive season. But, October tax collections rose 4.6% to Rs 1.95 lakh crore due to the higher consumption in the period of Diwali.
In November, the complete effect of GST rationalisation across most sectors was felt in November which can have contributed to the moderation in collections as compared to October.
In November, the cess collections have been reduced to Rs 4,006 crore, which is lower compared to the third of Rs 12,950 crore in the same month last year. The same reduction is because of the removal of compensation cess under GST 2.0.
Earlier, in the GST collection data, the compensation cess was included. But, the data presented has considered cess separately, and if the cess is also considered as a part of gross domestic GST collection, then the numbers shall exhibit a further reduction.
It is due to the cess collection having decreased by two-thirds, because of tobacco now being subject to the cess and other items such as aerated beverages and motor vehicles going outside its ambit.
GST Collection for November 2025
