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GST Rate Revision Has Resulted In 5% Rise In Revenue For States: Minister
GST Rate Revision Has Resulted In 5% Rise In Revenue For States: Minister
In a written reply to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said that the GST collections during September to November of the current financial year (2025-26) have risen to Rs 2,59,202 crore from Rs 2,46,197 crore in the same period of 2024-25.
New Delhi: The revision in GST rates that kicked in from September 22, as part of the economic reforms of the government, have resulted in a 5 per cent growth in the revenue of states (Gross SGST + IGST settled to States) during the period from September to November of the current financial year compared to the same period of the previous financial year, the Parliament was informed on Tuesday.
In a written reply to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said that the GST collections during September to November of the current financial year (2025-26) have risen to Rs 2,59,202 crore from Rs 2,46,197 crore in the same period of 2024-25.
The minister also noted that the GST rates are prescribed on the recommendations of the GST Council, which is a constitutional body comprising members from states, UTs, and the Centre. The GST Council, in its 56th meeting held on September 3, 2025, has recommended a comprehensive rate rationalisation and structural simplification of the tax structure. These recommendations have been notified by the Central government with effect from September 22, 2025.
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The recent GST rate rationalisation and the government's continued emphasis on ease of doing business are part of the government's multi-pronged strategy to boost consumption growth in the economy. The strengthening of consumption demand is expected to have a positive impact on GST revenue. The new GST rates became effective only from September 22, 2025 and the Gross GST collections excluding Compensation Cess from October to November 2025 registered a 4.2 per cent year-on-year growth.
The minister said that the receipts from cesses and surcharges form part of the Consolidated Fund of India and are used to finance the development and welfare measures in the states through various Central government schemes and initiatives.
The minister also explained in answer to another question that the GST rate for pencils, pencil sharpeners, erasers, exercise books, graph books, laboratory notebooks, and notebooks has been reduced to nil.
Source: ZeeNews
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