New Delhi : Gross Goods and Services Tax (GST) revenue saw less than 1% annualized growth to ₹1.70 lakh crore in November, the first full month after the tax rates were rationalised, with government officials and industry experts saying that the short-term moderation in collections was only to be expected—and pointing out that the fact that the revenue has not fallen on account of a major boost in consumption, which was also expected.
The November collections were ₹1,70,276 crore, compared to ₹1,69,016 crore in November 2024, and it was the lowest in the first eight months of 2025-26. The lower GST rates kicked in from September 22, and November reflects actual business transactions in October, the first full month after the cuts.
Cess revenue in the month of November fell by over 69% to ₹4,006 crore as compared to ₹12.950 crore in the same month previous year, according to latest data released by the Union finance ministry on Monday. The GST rate rationalisation also saw removal of the compensation cess on luxury items, except for sin goods like pan masala and tobacco goods.
Gross revenues in the first eight months (April-November 2025) of the current financial year registered around 9% growth to over ₹14.75 lakh crore as compared to ₹13.55 lakh crore in April-November 2024, according to the data.
Net GST revenue after refunds in November saw a 1.3% increase to ₹1,52,079 crore as compared to ₹1,50,062 crore in the same month of previous year. Refunds in the month of November this year saw a 4% fall to ₹18,196 crore as compared to ₹18,954 crore in November 2024. Cumulative net collections in April-November 2025 rose by 7.3% to ₹12,79,434 crore as against ₹11,92,455 crore in April-November 2024.
“While the GST collections were expected to moderate due to the steep rate cuts across the board, there was an expectation of a consumption boost on account of these rate cuts,” M.S. Mani, partner at Deloitte India, said. The GST Council on September 3 announced transformative next generation of reforms in the indirect tax regime—GST 2.0, with a two-slab rate structure of 5% and 18% instead of four slabs, with a special rate of 40% for luxury and sin goods from September 22, making hundreds of products cheaper.
The impact of this was captured in the GST ‘Bachaat Utsav’ consumption data as the taxable value of all supplies grew by 15% during the two-month period of September-October 2025, compared to the same period in 2024. The annualized growth in the same period last year was only 8.6%, a government official said, quoting from internal data.
“This surge in taxable value demonstrates strong consumption uplift, stimulated by reduced rates and improved compliance behaviour. It vindicates our strategy that reducing rates on essentials and mass-use sectors would create demand-side buoyancy ,” the official added, asking not to be named.
Trends confirm that GST 2.0 has not disrupted “revenue stability” and the consumption-side buoyancy has begun to translate into higher taxable value in key sectors such as fast-moving consumer goods (FMCG), prepared food stuffs, busses and cars, cement, goods carrier, tractors, pharmaceuticals, and medical devices.
Pratik Jain, partner at Price Waterhouse & Co. LLP said: “GST collection for November is only marginally higher than last year. It was expected as this reflects a full month’s (i.e. October 2025) impact of GST 2.0 rate cuts. With steady increase in demand, the collection should progressively become better in the next few months.”
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