India’s GST collections softened in November 2025 due to the rationalisation move that reduced the indirect tax of hundreds of items.
Gross GST revenue rose 0.7% year-on-year to ₹1,70,276 crore in November 2025, as against ₹1.95 crore in October 2025, according to provisional data released by the government on Monday (1 December 2025). Still, on a year-to-date basis (April-November 2025), GST collections are up 8.9% annually at ₹14,75,488 crore.
- GST refunds fell 4% year-on-year to ₹18,196 crore.
- Export refunds rose 3.5%, while domestic refunds fell 12%.
- GST from imports increased 10.2% year-on-year to ₹45,976 crore.
- The outgoing compension cess fell 69% year-on-year to ₹4,006 crore.
On 22 September, India cut GST rates on hundreds of items—from soaps to small cars—as part of a rationalisation move to reduce the number of tax slabs to two (5% and 18%) from four (5%, 12%, 18% and 28%). A new 40% slab for sin and luxury goods while the compensation cess was done away with.
Therefore, with goods and services tax reducing for most items, revenue has naturally compressed for the short-term.
Despite this dip GST collections, the government has stuck to timely release of GST refunds—particularly for inverted duty structures and exports, EY India’s tax partner Saurabh Agarwal told HT.com over WhatsApp.
“This resolute action is a powerful indication of India’s dedication to ensuring zero working capital blockage for the business ecosystem, a necessary boost for liquidity and growth.”
Statewise GST Collections
Across states, GST collections in November 2025 showed mixed trends. Several northeastern states outperformed while many larger states saw declines.
- Arunachal Pradesh, Nagaland, Manipur, Meghalaya and Assam recorded positive growth, led by Arunachal’s strong 33% rise.
- Sharp drops were seen in Mizoram (-41%), Sikkim (-35%) and Ladakh (-28%), reflecting volatility in smaller tax bases.
- Maharashtra (3%), Karnataka (5%) and Kerala (7%) posted moderate gains.
- Gujarat (-7%), Tamil Nadu (-4%), Uttar Pradesh (-7%), Madhya Pradesh (-8%) and West Bengal (-3%) reported declines.
“This counter-intuitive increase, despite rate cuts, is a tangible sign of rising consumption and development across these regions (northeast), underscoring the positive long-term impact of GST reforms,” Agarwal said. “The focus remains on sustainable compliance and holistic economic expansion.”