GST collections in September: After the implementation of the GST reform, the government’s revenue has appeared positively. State governments earlier feared that the rate cuts would negatively impact the collection, but the September 2025 figures prove this fear wrong. The new rates came into effect from 22 September and heavy purchases in the festive season brought the GST collection to a record level.

GST collection increased

In September 2025, the GST collection increased by 9.1 percent to Rs 1.89 lakh crore. Comparison, it was Rs 1.73 lakh crore in September 2024 and Rs 1.86 lakh crore in August 2025. Gross domestic revenue increased by 6.8 percent to Rs 1.36 lakh crore and import tax increased by 15.6 percent to Rs 52,492 crore.

With this, GST refund also increased by 40.1 percent to Rs 28,657 crore on an annual basis. In September 2025, the net GST revenue was Rs 1.60 lakh crore, which is five percent more than the previous year.

Tax rates were cut on 375 items under GST 2.0 reforms, including kitchen goods, electronic items, medicines, equipment and motor vehicles. The direct impact of these changes has been seen as relief to the common consumers and the government as better revenue growth.

Perfect treasure of government

Minister of State for Finance Pankaj Chaudhary on Monday expressed confidence that the recent Goods and Services Tax (GST) reforms will increase the market shopping and will speed up the domestic economy. He said this while interacting with local businessmen, entrepreneurs and tax experts in Indore.

On this occasion, Chaudhary said, “Prime Minister Narendra Modi believes that when the GST reforms will provide extra money in the hands of the common people, it will increase the purchase in the market and the economy will gain momentum.” He further said that the GST system led by Prime Minister Modi was implemented in 2017, although the preparation was going on about 10 years ago.

Targeting the Congress -led United Progressive Alliance (UPA) government, Chaudhary said that the government of that time could not succeed in implementing the GST system as the public and the state governments did not trust that government. He alleged that due to lack of credibility of the then government, the state governments could not be ready for the GST system.

GST Rate Cut: Before Navratri, the central government has given great news to the common people. Notification has been issued by the government regarding the new rates of Goods and Services Tax (GST). These new rates will be applicable from September 22, after which many things will become cheaper. It was announced on 3 September after a two -day meeting of the GST Council and after that the Finance Ministry has issued a notification.

What were the changes?

The new rates will replace the notification released on 28 June in the year 2017. That is, from September 22, goods and services will be available according to the new GST rates. In the next few days, notifications in this regard will also be issued by the state governments. Earlier there were four rates of GST – 5 percent, 12 percent, 18 percent and 28 percent. But now according to the new rates, only two slabs will remain – 5 percent and 18 percent.

What will be the benefit?

The biggest advantage will be that most of the goods and services that used to come in 28 percent slabs have been made in 18 percent slab. At the same time, many items and services of 12 percent slab have now come in the slab of 5 percent. However, harmful and luxury items are now removed from 28 percent to 40 percent special slab.

It is worth noting that the Central Government has taken this step of GST reform (GST reform) at a time when the US, who is trying to stop the Ukraine war, has put an additional 25 percent tariff on India as a penalty on India due to buying crude oil from Russia. After this move, it has become very difficult for Indian exporters to be in competition in the US market. However, after this, the government has taken several steps to provide relief to exporters.

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SBI Research Report on GST: GST 2.0 was announced amidst the ongoing trade tariff tension with the US. It is being said that due to extensive changes in GST rates, tax rates on essential household goods and services will be reduced. In addition, it can help reduce retail inflation from 0.65% to 0.75% in the next financial year. On Thursday, SBI Research said that in the 56th meeting of the GST Council on Wednesday, two tax slabs of 5% and 18% have been approved instead of the current four -level tax rate structure.

What is going to happen?
In addition, a special rate of 40% has been fixed for some luxury and harmful goods and services. The new tax rates will be effective from 22 September except tobacco and related products. The SBI report further stated that out of the 453 items which were changed in GST rates, 413 items were seen to be seen to be seen, while only 40 items were seen to be increased. About 295 items now apply 5 percent or 0 GST rate instead of 12 percent.

Since the GST rate of essential commodities (about 295 items) has come down from 12% to 5% or 0, the consumer price index-based inflation in this category can also be reduced by 0.25 to 0.30 percent in FY 2025-26, keeping in mind the effect of getting 60% of customers on food items.

Why can inflation be reduced?

If you believe in SBI Research Report, then rationalization of GST rates on services will reduce retail inflation on other goods and services from 0.40 to 0.45%. In this, customers have been estimated to get 50% benefits.

According to the report, retail inflation may decrease from 0.65 to 0.75% during the financial year 2026-27. The effective weight average GST rate has come down to 11.6 percent in September 2019, which was 14.4 percent in the beginning, with the GST Council rationalized by the GST Council. According to the report, in view of the current change in rates, the effective weight average GST rate can be reduced to 9.5 percent.

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Indian Business Leaders on GST Reforms: In the midst of tension on tariffs from the US, India was announced by Prime Minister Narendra Modi on the 79th Independence Day by Prime Minister Narendra Modi to promote domestic economy on the 79th Independence Day. After this, the four slabs of GST were replaced by two slabs and most of the taxes were reduced considerably or completely removed on most of the everyday things. This change will be applicable from 22 September.

It is believed that this will increase the government burden and will affect the income from tax, but it will have a very positive impact on the economy and employment. This is also expected to speed up the speed of GDP.

What do big businessmen say?

Indian business personalities have also welcomed this decision of the government. Radhika Gupta, MD and CEO of Edelweiss Asset Management, described it as a progressive step in challenging time on social media and said that this will strengthen both demand and positive trends. Industrialist Harsh Goenka called it a Diwali gift for the common people and said that the prices of goods related to everyday things, healthcare, education and agriculture have been reduced.

Big Diwali Gift for every Indian!
GST on Daily Essentials, Healthcare, Education & Farming Inputs Slashed.

cheaper groceries
relife in healthcare
affordable education
Support for Farmers

Next-Gen GST = Ease of Living + Boost to Economy.

– Harsh Goenka (@Hvgenka) September 3, 2025

Mahindra Group Chairman Anand Mahindra also described it as a positive step and said that such reforms will promote investment and consumption and strengthen India’s position globally. He stressed the need for more improvements, citing Swami Vivekananda’s famous teachings.

We have now joined the battle…

More and faster reforms are the surest way to unleash consumption and investment.
That, in turn, will expand the economy and amplife India’s voice in the world.

But let’s remember the famous exhortation of swami vivekananda:
“Arise, Awake, and… https://t.co/rdortjscw1

– Anand Mahindra (@anandmahindra) September 3, 2025

Prior to these reactions, Finance Minister Nirmala Sitharaman on Wednesday announced the reduction of GST rates on everyday things, automobiles, electronic devices and agricultural goods. In the 56th GST Council meeting, the tax slab was reduced to four to two and GST slab of 28 percent and 12 percent was completely abolished.

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