Effective GST rate falls to 13.1%
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The effective GST rate fell to 13.13% as gross tax liability grew 13.6%.
- ✓A senior official said, "Consumption has held up and the base has widened while the revenue has stabilised." The upcoming 57th GST Council meeting will now focus on making refunds faster and limiting arrest powers for taxpayers.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Financial Express
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Gross tax liability grew 13.6% during the period, while the effective tax rate on domestic taxable supply declined from 14.55% to 13.13%, sources said.
"Consumption has held up and the base has widened while the revenue has stabilised," a senior official said, adding that the revenue shock that was feared did not occur.
Revenue growth remained positive through the 12 months. In the last four months, there has been an acceleration in revenue growth, sources said.
The 56th meeting of the GST Council, held on September 3-4, 2025, in New Delhi, replaced the multi-rate, complex structure of the indirect tax system with a relatively simpler two-rate structure of 5% and 18%, along with an additional special rate of 40% for demerit and sin goods.
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