GST Collections Rise Just 0.7% in November as Domestic Demand Weakens
India’s GST collections rose just 0.7% in November, with weak domestic demand pulling down overall growth.
According to the official data, India’s Goods and Services Tax (GST) collections grew only 0.7% in November 2025, rising to Rs. 1.70 lakh crore compared with Rs. 1.69 lakh crore a year ago.
The slowdown comes just two months after the government’s major GST rate cuts in September 2025, which reduced taxes on several household items, services and essentials. Lower rates mean the government now collects less tax per product sold, even if consumption remains stable.
The effect is clearly visible in the numbers. Domestic GST revenue fell by 2.3%, dropping from Rs. 1.27 lakh crore in November 2024 to Rs. 1.24 lakh crore this year, indicating softer demand combined with lower tax incidence. Opposite to this, GST collected from imports rose 10.2%, helping prevent a steeper fall in overall revenue.
Net GST revenue after refunds grew slightly by 1.3%, reaching Rs. 1.52 lakh crore. Export refunds increased modestly, while domestic refunds declined during the month. Cess collections, which are already being phased down under GST reforms, saw a sharp fall from Rs. 12,950 crore to Rs. 4,006 crore.
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These data reflect a combination of factors such as lower GST rates, a dip in domestic consumption, and a shift in spending patterns after the festive season. Stronger import activity continues to support the overall GST numbers, but domestic weakness is weighing on growth.
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State-wise data also showed mixed trends. Large states like Maharashtra and Karnataka reported modest increases, while several northeastern and hill states recorded declines in collections.
Despite the muted November figures, GST collections for the April–November period remain healthy, with total gross revenues up 8.9% compared to last year.
Officials described the November numbers as “stable” given the scale of GST rate cuts and ongoing rationalisation efforts, but acknowledged that domestic demand will need to strengthen for revenue growth to pick up again.
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