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India’s gross GST collections grew at a slower pace in November 2025, rising just 0.7% year-on- year to ₹1.70 trillion.
What kept the collections at a high level was the lower tax rates in the economy following the GST rate cuts. This helped support overall numbers even as growth slowed.
For context, in October the gross GST collection had grown 4.6% to about ₹1.95 lakh crore, compared with ₹1.87 lakh crore in the same month last year.
The how: slower growth in November reflects the impact of the GST rate rationalisation approved by the GST Council. The central government slashed rates on many commonly consumed items, which naturally reduced the tax collected on them.
GST is a key indicator of economic activity because it reflects how much people and businesses are buying.
The numbers also show a sharp drop in compensation cess. Domestic cess collections fell to ₹4,737 crore from ₹12,398 crore in November 2024, while net cess revenue dropped to ₹4,006 crore.
Domestic GST revenue took a small hit too, down 2.3% year-on-year, mostly because of lower IGST flows within the country.
In simple terms, IGST flows refer to the tax collected when goods or services move from one state to another in India.
Among states, Arunachal Pradesh, Nagaland, Manipur, Meghalaya and Assam recorded growth, with Arunachal leading at 33%.
At the same time, Mizoram, Sikkim and Ladakh saw steep declines of 41%, 35% and 28%, showing how smaller tax bases can create more volatile numbers.
