Stories
Effective GST Rate Falls to 10.84 Percent Following 2025 Rate Cuts
M
Moneycontrol•08-10-2026, 19:29
Effective GST Rate Falls to 10.84 Percent Following 2025 Rate Cuts
- •The effective GST rate on goods and services dropped from 11.74 percent to 10.84 percent following rate cuts announced in 2025.
- •The GST Council rationalized the tax structure into a two-tier system of 5 percent and 18 percent during its 56th meeting in September 2025.
- •Finance Ministry data shows monthly taxable supply increased by 25.8 percent to reach Rs 50.58 lakh crore.
- •The effective tax rate on domestic taxable supply decreased from 14.55 percent to 13.13 percent, while GST revenue continued to grow.
- •The 57th GST Council meeting approved a broad set of process reforms aimed at easing compliance, speeding up refunds, and reducing physical intervention.
Key Questions Answered
Following the rate cuts announced in 2025, the effective GST rate on all goods and services has fallen from 11.74 per cent to 10.84 per cent.
The 56th meeting of the GST Council in September 2025 rationalized the tax structure into an effective two-rate system of 5 per cent and 18 per cent.
The 57th GST Council meeting cleared a broad set of process reforms designed to simplify GST compliance, accelerate refunds, and reduce physical intervention by tax officials.
