GST NEW UPDATE: If you pay income tax, this news could be very important for you. The government revised GST rates on September 22, 2025, as part of its economic reforms. Following this, several states have seen a significant increase in their revenue. During the September-November period of the current financial year 2025-26, the revenue from SGST and IGST received by the states increased by 5%. Union Minister of State for Finance Pankaj Chaudhary informed the Rajya Sabha that the states received a total revenue of Rs 2,59,202 crore during this period, compared to Rs 2,46,197 crore in the same period last year.
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GST Council Recommendations and New Rates
Minister Pankaj Chaudhary clarified that GST rates are determined based on the recommendations of the GST Council. This is a constitutional body comprising representatives from states, union territories, and the central government. The 56th GST Council meeting, held on September 3, 2025, recommended revisions to GST rates and simplification of the tax structure, which the central government implemented from September 22, 2025.
4.2% Increase in Total GST Collection
The recent changes in GST rates and efforts to simplify trade have had a positive impact on collections in October and November 2025. During this period, total GST collection registered a 4.2% increase compared to the previous year. This increase is part of the government’s strategy to boost economic consumption and facilitate trade.
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Zero GST Rate on Some Items
The minister stated that the GST rate has been reduced to zero on certain items such as pencils, pencil sharpeners, erasers, exercise books, graph books, laboratory notebooks, and general notebooks. This step has been taken specifically to provide relief to students and educational institutions.
Utilisation of Revenue and Development
The revenue collected from GST and cess forms part of the Consolidated Fund of India. This fund is utilised for development and welfare activities in the states through various central schemes and initiatives. With the new changes, it is expected that revenue will improve further and the financial position of the states will be strengthened.
