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The government is considering a potential cut in GST rates on essential items such as pulses, puffed rice, tea, and besan
GST Rate Cut Likely Soon?
The government is considering a potential cut in GST rates on essential items such as pulses, puffed rice, tea, and besan, according to official sources.
With GST collections at all-time highs, authorities believe there is fiscal space to offer relief to the common man, sources told News18.
The Goods and Services Tax collections grew 6.2 per cent year-on-year to Rs 1.85 lakh crore in June 2025 against Rs 1.73 lakh crore in June 2024. However, the GST collections dropped sequentially with the figures crossing the Rs 2.01 lakh crore-mark in May 2025.
India’s gross Goods and Services Tax (GST) collection for May 2025 reached Rs 2.01 lakh crore, marking a 16.4 per cent increase from the Rs 1.72 lakh crore collected in May 2024, according to recent data released by the Ministry of Finance.
While the expected rate cut could exceed 8–9%, no final decision has been made yet.
Several Opposition-ruled states, along with some BJP-led ones, have submitted formal requests for a reduction in GST on key daily-use products. A final call is expected to be taken during the GST Council meeting later this month.
However, no date has been set for the next GST Council meeting yet.

Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als…Read More
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als… Read More
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