Archive · 17 Dec 2025
GST Rate Changes Boost States' Revenue
The government changed some GST rates to make the tax system simpler.
This change, which started on September 22, 2025, has helped states earn 5% more money from September to November 2025 compared to the same time last year.
The GST Council, which includes members from the central and state governments, suggested these changes.
The government hopes these changes will help people buy more things, which in turn will help the economy grow.
Additionally, the GST rate for school supplies like pencils and notebooks has been reduced to zero.
India's economy has been growing fast, and experts think the International Monetary Fund (IMF) will raise India's growth forecast to 7% for 2025-26.
To become a developed nation by 2047, India needs to keep growing at around 8% for the next 20 years.
This will require continuous reforms and improvements in infrastructure.
GST rate rationalisation led to a 5% growth in states' revenue from September to November 2025.
GST collections rose to Rs 2,59,202 crore in September to November 2025 from Rs 2,46,197 crore in the same period of 2024-25.
The GST Council recommended rate rationalisation and structural simplification in its 56th meeting on September 3, 2025.
The new GST rates became effective from September 22, 2025.
GST rates for school stationery items like pencils, erasers, and notebooks have been reduced to nil.
- Who
- Minister of State for Finance Pankaj Chaudhary, GST Council, Gita Gopinath
- What
- GST rate rationalisation leading to a 5% growth in states' revenue and potential IMF growth forecast hike to 7% for 2025-26
- When
- September to November 2025, September 3, 2025, Q2 2026
- Where
- India
- Why
- To boost consumption growth, simplify the tax structure, and achieve the 'Viksit Bharat' vision
Growth Optimists
Growth Skeptics
Future Growth Projections
Growth Optimists
India can achieve and maintain an 8% growth rate for the next 20 years, aligning with the 'Viksit Bharat' vision.
Growth Skeptics
Maintaining an 8% growth rate for 20 years is challenging and requires sustained reforms annually.
- GST Collections (Sep-Nov 2025)
- Rs 2,59,202 crore
- GST Collections (Sep-Nov 2024)
- Rs 2,46,197 crore
- Growth in States' Revenue
- 5%
- GST Rate Rationalisation Effective Date
- September 22, 2025
- GST Council Meeting
- 56th meeting on September 3, 2025
- GST Rate for School Stationery
- Nil
- IMF Initial Growth Forecast (2025-26)
- 6.5%
- IMF Revised Growth Forecast (2025)
- 6.6%
- Expected IMF Growth Forecast (2025-26)
- 7%
- India's GDP Growth (Q2 2026)
- 8.2%
- RBI GDP Growth Projection (2025-26)
- 7.3%
- India's GDP Growth (2024-25)
- 6.5%
- India's GDP Growth (2023-24)
- 9.2%
- India's GDP Growth (2022-23)
- 7.2%
- India's GDP Growth (2021-22)
- 8.7%
- Required Growth Rate for 'Viksit Bharat'
- 8%
Sources
GST Rate Rationalisation Leads To 5 Per Cent Growth In States’ Revenue: Minister Pankaj Chaudhary
Close the gap
IMF May Hike India Growth Forecast to 7% on Q2 Boom; Viksit Bharat in Sight: Gita Gopinath
Union govt reducing its contribution in various schemes: TN Fin min on MGNREGA changes
GST rationalisation, delay in assent to mineral Bill to hit Karnataka revenues: mid-year finance review
