The gross revenue collection under the Goods and Services Tax (GST) increased by 8.7 percent to ₹2,42,702 crore in April 2026. Data released by the Finance Ministry on Friday indicated that the domestic GST collection in April was ₹1,85,122 crore, while the GST revenue from imported goods stood at ₹57,580 crore, reflecting increases of 4.3 percent and 25.8 percent, respectively.

In the first month of the financial year, the government also issued refunds amounting to ₹31,793 crore under GST, which is 19.3 percent higher on a year-on-year basis. After accounting for refunds, the net GST collection rose by 7.3 percent to ₹2,10,909 crore, with domestic collection showing a slight increase of 0.3 percent to ₹1,65,126 crore and GST from imported goods increasing by 42.9 percent to ₹45,784 crore.

Publish with Us: Wish to feature your personal or organizational milestones, success stories, or press releases in Loktej English? Contact us, and we will guide you through our publication process.

Feedback & Corrections: We strive for accuracy. If you spot an error, have feedback, or object to the content of this article/press release, please notify us at loktejonline [at] gmail [dot] com. We will review the matter and rectify it at the earliest.

New Delhi, December 1: Goods and Services Tax (GST) collection in November recorded a marginal year-on-year increase of 0.7 percent, reaching Rs 1.70 lakh crore, which marks the lowest level in the past year. Data released on Monday indicates that consumption continues to improve despite reductions in tax rates on a majority of products and services. The government had implemented a new structure with only two GST rates of five percent and 18 percent effective from September 22, alongside a special rate of 40 percent fixed for luxury and harmful goods.

While tax rate cuts and robust festive purchasing had boosted GST collections in October, the figures for November reflect a sustained rise in consumption even after the conclusion of the festive season. As per agency report, the total GST collection for November, excluding cess, stood at Rs 1.70 lakh crore, showing a slight increase compared to Rs 1.69 lakh crore collected in the same month last year. This figure is significantly lower than the Rs 1.96 lakh crore collected in October, although the October data included compensation cess. When cess is included, the total tax collection for November was Rs 1.74 lakh crore, which is 4.22 percent lower than the Rs 1.82 lakh crore recorded in November 2024.

Under the new GST arrangement, compensation cess is applicable only to tobacco and pan masala products. Government sources clarified that cess was not included while preparing the November GST collection figures. A source noted that the value of taxable supplies in GST returns filed by companies has increased on an annual basis, reflecting an optimistic trend. The source added that increased consumption demonstrates the positive impact of GST cuts, expressing confidence that this tax reform will be sustainable and generate a multiplier effect on the economy in the future.

In terms of specific revenue components, domestic revenue declined by 2.3 percent to Rs 1.24 lakh crore, while revenue from imports increased by 10.2 percent to reach Rs 45,976 crore. Refunds during this period stood at Rs 18,196 crore, registering a decline of four percent. After adjusting for refunds, the net GST collection stood at Rs 1.52 lakh crore, which is 1.3 percent higher on a year-on-year basis.

Aditi Nayar, Chief Economist at rating agency ICRA, suggested that the increase in consumption could neutralize the impact of rate cuts on most products. She observed that while tax collection in the current financial year might fall short of budget estimates, the government is likely to receive higher than expected non-tax revenue to offset part of this deficit. M.S. Mani, a partner at Deloitte India, pointed out the wide disparity in tax collection across various states, emphasizing the need for a root-cause analysis of different regions to understand the reasons for the decline and implement appropriate policy measures. Tax expert Vivek Jalan noted that the collection appears weak because consumption did not rise enough to counter the reduced tax rates and increased refunds, highlighting the need to boost consumption in the remaining months of the financial year.

Surat – The central government’s new GST 2.0 regime, effective from September 22, is set to directly benefit lower- and middle-income consumers. With a reduction in tax slabs on most daily-use and household products, prices are expected to fall. Nearly 90 percent of items previously falling under the 12 percent and 28 percent GST categories have now been shifted to the 5 percent and 18 percent slabs. This change is expected to ease household budgets and increase purchasing power.

In Surat’s textile industry, one of the city’s economic pillars, polyester yarn has witnessed a sharp reduction in GST, dropping from 12 percent to 5 percent. This 7 percent cut is expected to provide relief across the textile value chain, including weavers, processing units, job workers, and traders, ultimately benefiting end consumers. With lower input costs, fabrics are expected to become cheaper, enhancing affordability. However, industry experts note that it may take about a month for the impact to reach the market, as the process involves yarn production, fabric processing, and value addition before products are sold at revised rates.

While the textile sector at large gains from the revised GST structure, lehenga traders are facing fresh challenges. Under the earlier system, lehengas priced above Rs. 1,000 attracted 12 percent GST. Now, with GST 2.0, lehengas priced above Rs. 2,500 fall under the 18 percent slab. Since most lehengas are priced starting at Rs. 2,500, this effectively brings the entire segment under a higher tax bracket. Traders fear this will directly impact demand and increase costs for consumers, making lehengas less affordable in a market where price sensitivity plays a key role.

As per report, the mixed impact of GST 2.0 is evident in Surat. While consumers and large segments of the textile industry stand to benefit from reduced prices, specific sectors like lehenga manufacturing may struggle under the revised structure. The coming weeks will determine how these changes balance out across markets during the festive season.

New Delhi, September 21 – Leading fast-moving consumer goods (FMCG) companies have announced a reduction in prices of several daily-use items following the recent cut in Goods and Services Tax (GST) rates. Starting Monday, essential products such as soaps, detergents, coffee, diapers, biscuits, ghee, and edible oils will become cheaper. The move is expected to boost consumption and sales during the upcoming festive season, which begins with Navratri.

Companies have acted swiftly to pass on the benefits of GST 2.0 to consumers without delay. From September 22, revised maximum retail price (MRP) lists will take effect for products such as soaps, shampoos, baby diapers, toothpaste, razors, and after-shave lotions. The intent is to ensure that consumers receive the direct benefit of the GST rate reduction.

Procter & Gamble, Emami, and Hindustan Unilever Limited (HUL) are among the major companies that have released new price lists. Information about these changes has been shared with distributors and consumers through company websites. Procter & Gamble has reduced prices of products under its popular brands including Vicks, Head & Shoulders, Pantene, Pampers, Gillette, Old Spice, and Oral-B. In particular, prices of childcare products have been lowered, with the GST on diapers reduced from 12 percent to 5 percent and on baby wipes from 18 percent to 5 percent, effective September 22, 2025. The company has also announced reductions on Gillette and Old Spice products.

Emami has lowered prices of Boroplus antiseptic cream, Navratna Ayurvedic oil, and Zandu balm, while HUL has reduced prices of products across categories, including Dove shampoo, Horlicks, Kissan jam, Bru coffee, Lux soap, and Lifebuoy soap.

As per agency report, these price revisions follow the decision of the GST Council earlier this month to rationalize the tax structure. The four-tier system has been replaced by two slabs of 5 percent and 18 percent, while luxury goods will now attract a special rate of 40 percent. Excluding cigarettes, tobacco, and related items, the new GST rates will come into effect from September 22.

The revised prices are expected to provide relief to consumers and encourage higher demand during the festive season.

Chennai, September 2 – Union Finance Minister Nirmala Sitharaman on Tuesday said that the next generation of GST reforms will make India’s economy fully open and transparent, further easing compliance burdens and benefiting small businesses. She was addressing the 120th foundation day celebration of City Union Bank in Tamil Nadu, where President Droupadi Murmu was present as the chief guest.

Sitharaman noted that Prime Minister Narendra Modi had recently announced the formation of a task force for these reforms, aimed at simplifying rules, lowering compliance costs, and creating a more favorable environment for startups, micro, small and medium enterprises, and entrepreneurs.

She explained that with the council meeting scheduled over the next two days, the planned rollout of next-generation GST reforms will help open up the economy in the coming months. As per agency report, Sitharaman emphasized that the reforms will reduce compliance burdens further, making it easier for small businesses to grow and sustain themselves.

The Finance Minister also recalled that in his Independence Day address, Prime Minister Modi had announced major changes in GST and promised festive season benefits for citizens during Diwali.

Looking ahead to India’s vision of becoming a developed nation by 2047, Sitharaman urged banks to expand credit, accelerate infrastructure development, ensure timely financing for MSMEs, bring unbanked citizens into formal banking, and meet diverse needs of the economy. She stressed that the guiding principles for this transformation should be trust, technology, and transparency.

Highlighting progress in financial inclusion, Sitharaman said that 560 million Jan Dhan accounts have been opened in the past 11 years, with total deposits of Rs. 2.68 lakh crore, the majority of which belong to women. She also pointed out that India’s scheduled commercial banks have shown significant improvement in asset quality.

She further added that global rating agency S\&P has upgraded India’s long-term credit rating for the first time in 18 years, underlining the country’s strengthened financial standing.

New Delhi, August 21: The Group of Ministers (GoM) on Goods and Services Tax (GST) rationalisation has approved the central government’s proposal to adopt a simplified two-slab structure of 5 percent and 18 percent. The decision was taken during a key meeting held on Thursday, aiming to make the current complex tax structure more efficient and business-friendly.

Bihar Deputy Chief Minister Samrat Choudhary, who heads the GoM, stated that the six-member state ministers' panel has agreed to eliminate the existing 12 and 28 percent tax slabs in line with the Centre’s recommendation. Speaking to the press after the meeting, Choudhary confirmed that the GoM has accepted both proposals put forward by the Centre.

Currently, GST operates under a four-tier rate system—5, 12, 18, and 28 percent—with basic necessities like food items either exempt or taxed at the lowest rate of 5 percent. Luxury and socially undesirable items attract the highest 28 percent rate, along with an additional cess in certain cases, such as cars.

As per agency report, Uttar Pradesh Finance Minister Suresh Kumar Khanna clarified that the Centre’s revised framework also includes a 40 percent GST slab exclusively for luxury and demerit goods. This new upper slab is intended to cover high-end items considered socially or environmentally harmful.

However, some states have expressed reservations. West Bengal Finance Minister Chandrima Bhattacharya proposed that an additional tax be levied above the 40 percent GST rate to maintain the current effective taxation on luxury products like cars. She also pointed out that the Centre’s proposal did not clearly indicate how the potential revenue shortfall from this restructuring would be addressed.

While the proposal is a significant move toward rationalising India's indirect tax regime, concerns about its impact on state revenues and tax collections remain. The Centre has yet to specify how it plans to offset the losses arising from removing the two middle slabs. Nevertheless, the approval by the GoM marks a critical step forward in overhauling the GST framework to make it simpler and more equitable.

New Delhi, August 20: A recent SBI Research report has projected that the proposed GST 2.0 reforms could lead to a substantial increase in consumption expenditure, estimated at Rs 5.5 lakh crore in the financial year 2025–26. This surge in spending could result in an additional GST revenue gain of approximately Rs 52,000 crore, which would more than compensate for the anticipated revenue loss of Rs 45,000 crore from the proposed tax rate cuts under GST 2.0.

As per agency report, the study outlines that GST 2.0 is expected to deliver multiple benefits including increased consumption, enhanced tax revenue, lower inflation, and higher GDP growth. While the average annual revenue loss from the proposed changes is projected at around Rs 85,000 crore, the report emphasizes that this could be significantly offset by the shifting of demerit goods from the 28 percent tax slab to a higher 40 percent slab, thereby increasing tax collections in other areas.

Despite the average revenue loss projections, the SBI report notes that consumption alone could grow by Rs 1.98 lakh crore. When combined with the effect of tax rate rationalisation, this could translate into an overall consumption expenditure boost of Rs 5.31 lakh crore, or roughly 1.6 percent of India's GDP.

Some financial analysts had previously raised concerns that the government might resort to increased borrowing to make up for the revenue shortfall, which could impact fiscal deficit targets. However, SBI Research dismissed these concerns, stating that the fiscal deficit target for FY26 is unlikely to be breached. It suggested that the debt market's apprehensions regarding GST-related fiscal slippage appear somewhat exaggerated.

On the inflation front, the report highlighted that GST rates on essential items such as food and clothing could be reduced from 12 percent to 5 percent. This move is expected to lower the Consumer Price Index (CPI) inflation by 10 to 15 basis points, with a significant 60 percent impact attributed to food items alone. Additionally, rationalising GST rates on services could lead to a further reduction of 5 to 10 basis points in CPI inflation, contributing another 25 percent to the total disinflationary effect.

In total, the report estimates that the cumulative effect of GST 2.0 reforms could reduce CPI inflation by 20 to 25 basis points, providing relief to consumers and stabilizing prices across essential sectors. Notably, over the past four years, the central government has collected Rs 2.26 lakh crore more than the estimated tax revenue on average, suggesting a strong revenue buffer that can support these reforms.

The findings suggest that GST 2.0 could play a critical role in driving consumption-led growth while maintaining fiscal discipline and moderating inflation, positioning the Indian economy on a more robust and inclusive path forward.

New Delhi, March 28 – The Central Board of Indirect Taxes and Customs (CBIC) has announced that all Central GST (CGST) field offices across the country will remain open from March 29 to 31, 2025, to facilitate the completion of pending departmental work before the close of the financial year.

This directive comes shortly after a similar order from the Central Board of Direct Taxes (CBDT), which instructed income tax offices to remain open over the weekend and through the Eid-ul-Fitr holiday, expected to fall on Monday.

As per agency report, CBIC has directed all Chief Commissioners to ensure that CGST offices are operational on these dates and to treat them as working days, despite being part of a weekend and a potential public holiday.

March 31 marks the end of the 2024-25 financial year. All related financial settlements and government payments must be completed by this date. Additionally, it is the last day to file updated income tax returns for the assessment year 2023-24.

New Delhi, March 15 – The Congress party on Saturday criticized the government over the Goods and Services Tax (GST) system, highlighting inconsistencies in tax rates on various products. Referring to a recent controversy involving a well-known donut chain, Congress argued that the country now needs a revised version of GST, which it termed as ‘GST 2.0.’

Congress General Secretary Jairam Ramesh cited a news report stating that Singapore-based donut chain Mad Over Donuts has been issued a tax notice of ₹100 crore for allegedly misclassifying its business and paying a lower 5 percent GST instead of the required 18 percent applicable on bakery products. The notice has sparked a legal battle that has now reached the Bombay High Court.

Donuts, typically made from flour and decorated with chocolate, icing, powdered sugar, or fruit, are a popular snack worldwide. The tax dispute revolves around whether they should be classified under restaurant services, attracting 5 percent GST, or bakery products, which are taxed at 18 percent.

As per agency report, Ramesh took to social media platform X, stating, "After popcorn, now donuts are feeling the impact of GST. Mad Over Donuts is facing a ₹100 crore tax notice for alleged misclassification of its business. While the company paid 5 percent GST by classifying its product as a restaurant service, authorities claim that bakery items fall under the 18 percent tax bracket."

He further criticized the government’s approach, calling the situation a reflection of the challenges businesses face under the current GST system. Taking a jibe at the ease of doing business in India, he remarked that such tax disputes make a strong case for introducing GST 2.0.

The Congress party has been vocal about its demand for reforms in the GST structure, arguing that frequent classification disputes and varying tax slabs create hurdles for businesses. With this latest controversy reaching the courts, the debate over GST reforms is expected to gain further momentum in the political landscape.

New Delhi, November 15: The upcoming GST Council meeting on December 21 is expected to deliberate on granting tax exemptions for term life insurance premiums. The 55th meeting of the council will be held in Jaisalmer, Rajasthan, and will be chaired by Union Finance Minister Nirmala Sitharaman, alongside finance ministers from various states. Originally scheduled for November, the meeting was rescheduled to December.

Key Agenda Items

The meeting will address several significant issues, including recommendations from the Group of Ministers (GoM) on health and life insurance. The GoM has proposed GST exemptions for term life insurance premiums and health insurance premiums for senior citizens. If approved, GST exemptions could be applied to health insurance premiums for coverage up to INR 5 lakh. Policies with coverage exceeding INR 5 lakh would continue to attract GST at the existing rates.

Proposed GST Rate Adjustments

The council is also expected to discuss reducing the GST rate on commonly used items from 12 percent to 5 percent. This move follows a GoM report submitted earlier this year, suggesting adjustments to tax rates on essential goods and services. Experts anticipate that the council may consider reducing the current four tax slabs (5 percent, 12 percent, 18 percent, and 28 percent) to three, simplifying the GST structure.

Input for Union Budget 2024

State finance ministers will also present their recommendations for the Union Budget 2024, scheduled to be tabled on February 1. The meeting will play a crucial role in shaping policy changes and addressing state-level concerns.

Current GST Framework

Currently, GST collections are categorized into four slabs: 5 percent, 12 percent, 18 percent, and 28 percent. Essential items are often taxed at the lowest slab or are exempted, while luxury goods attract higher rates. Calls for a review of the tax structure have gained momentum, with stakeholders urging the government to simplify the framework and reduce the number of tax slabs.

The December meeting is expected to yield decisions that could significantly impact taxpayers and businesses, particularly in the insurance sector.

Surat : The recent introduction of Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) on rented properties is likely to raise rental prices for shops in Surat's textile markets. As per the new GST provision, tenants of commercial properties will now be responsible for paying an 18% GST via RCM, which could lead to increased financial pressure on traders renting properties.

The GST Council recently discovered that many traders were not paying taxes on rent despite registering rental agreements to obtain GST numbers. A report was presented to the GST Council, which led to the decision to enforce an 18% GST under RCM on rental properties. This move will directly impact traders who were previously not paying tax on their rented premises.

Experts warn that with this new rule, a significant portion of traders' working capital may be tied up as GST credit on the portal, further increasing financial strain. Many traders already face challenges in utilizing their accumulated GST credits, and the new requirement to pay RCM on rent will likely exacerbate these issues.

Impact on Surat’s Textile Markets

In Surat’s textile markets, an estimated 30-35% of shops are rented. According to market leaders, Harbanslal Arora and Narendra Sabu, around 40-50% of shops in the Ring Road area are on rent, and with the new GST rule, rental prices may rise by up to 20%. Raghukul Textile Market leaders, Shravan Mengotia and Rajeev Omer, noted that about 30-40% of shops in their market are rented. They expect that this GST rule will increase the financial burden on these traders.

New GST Rules for Commercial Property Rent: CA Puneet Garg

Chartered Accountant Puneet Garg explained that the GST Council’s recent decision on September 9, 2024, mandates that commercial property rented to GST-registered entities will now attract GST under RCM. Previously, no GST was applicable in such cases unless the property owner was a registered entity. Under the new rule, the tenant will be responsible for paying 18% GST on rent. This is expected to increase the government’s GST collection but will also shift the tax burden to tenants.

Key Aspects of the GST RCM on Rental Properties:

1. No GST will apply if neither the tenant nor the property owner is GST-registered.
2. If both parties are GST-registered, the property owner will be responsible for paying the GST.
3. If the tenant is not registered but the owner is, the owner will be responsible for the GST payment.
4. If the tenant is registered but the owner is not, GST under RCM will apply, and the tenant must pay the 18% GST on rent.

This new rule is expected to be implemented soon, following the official notification from the government.

Finance Minister Nirmala Sitharaman, in the latest Goods and Services Tax (GST) council meeting held at the Sushma Swaraj Bhavan in New Delhi, has announced several critical decisions aimed at rationalizing the GST structure. The council reviewed the reports from the Ministerial Groups (GoMs) on rate rationalization and real estate, indicating potential shifts in policy to ease the tax burden on various sectors.

Highlighting major revenue gains, Sitharaman pointed out that the revenue from online gaming has seen a dramatic 412% increase over the last six months, amounting to Rs. 6909 crores. In line with making healthcare more affordable, the GST rate on cancer drugs has been slashed from 12% to 5%. Additionally, the tax on snacks has been reduced from 18% to 12%, reflecting the council's responsive approach to public and industry feedback.

In an educational boost, the Finance Minister declared that recognized universities and research centers would no longer need to pay GST on grants received, fostering a more supportive environment for academic growth and research.

Moreover, two new GoMs have been established, one overseeing medical and health insurance, headed by the Deputy Chief Minister of Bihar, focusing on the GST implications in these sectors. They are expected to deliver a report by the end of October 2024, with the GST Council set to make final decisions based on these findings in November.

Addressing future challenges, Sitharaman announced the formation of a ministerial group to deliberate on compensation cess post-March 2026. This group will explore methods to balance the IGST distribution and address state concerns over revenue sharing.

The 54th GST Council meeting, chaired by Sitharaman and attended by Central and State finance ministers, along with other senior officials, marks a significant step in refining the tax framework, which will likely bolster economic and structural reform in the country. The council continues to strive for a balanced approach that supports both growth and fairness in the tax system, aiming to align it with global standards and contemporary economic realities.