Economic Survey 2025-26: GST 2.0 Delivers Stable Revenue As Transactions Rise
The Economic Survey 2025–26 said GST revenues remained steady following rate rationalisation under the GST 2.0 framework.
Gross GST collections during April to December 2025 stood at Rs 17.4 lakh crore, registering a year-on-year growth of 6.7 percent, the Survey noted. It added that GST revenue growth broadly tracked nominal GDP growth during the period.
The Survey also pointed to strong transaction activity, with cumulative e-way bill generation rising 21 percent year-on-year during the same period.
According to the survey, GST rate rationalisation with effect from September 22, 2025, was part of a broader tax reform sequence, following the corporate tax cuts of 2019 and the personal income tax reforms implemented from April 2025. Items moved to the 5 percent or nil rate slabs largely comprised goods of mass and daily consumption.
The Survey said the post-rationalization period coincided with softer inflation and higher real purchasing power, particularly in rural non-farm incomes.
It also flagged stronger high-frequency indicators. Purchasing Managers Index readings improved, and automobile and tractor sales picked up during the festive season.
On the administrative side, the Survey pointed to quicker GST refunds, steps to address inverted duty structures in sectors such as textiles and fertilisers, and moves to simplify compliance through audit consolidation and digital systems.