GST Revenues Hold Steady at 6.7% of GDP Despite Rate Cuts

Despite several GST rate reductions under GST 2.0, revenue collection remains steady at 6.7% of GDP, indicating robust compliance and economic activity. CBIC data shows that e-way bill generation, improved IT infrastructure, and taxpayer education have contributed to stable revenue. Analysts observe that rate rationalization has not adversely impacted collections, while encouraging formalization of transactions. The government attributes the stability to better enforcement, wider taxpayer coverage, and improved electronic filing systems, which reduce leakages and underreporting. These results provide confidence in the sustainability of GST reforms and their role in broadening the tax base, strengthening fiscal governance, and supporting state and central budgets without the need for compensatory measures. Stakeholders see this as a positive signal for long-term investment planning and economic predictability.