The highest GST collection ever recorded for a single month is ₹2.37 lakh crore, achieved in April 2025. This record figure was driven by strong year-end compliance, surpassing the previous high set in April 2024. On an annual basis, the financial year 2024-25 recorded the highest-ever gross GST collection at ₹22.08 lakh crore.
In 2024–25, GST recorded its highest-ever gross collection of ₹22.08 lakh crore, reflecting a year-on-year growth of 9.4 percent. The average monthly collection stood at ₹1.84 lakh crore. In 2020–21, the total collection was ₹11.37 lakh crore, with a monthly average of ₹95,000 crore.
Gross GST revenue hit an all-time high of Rs 22.08 lakh crore during the 2024-25 financial year, doubling from Rs 11.37 lakh crore in FY21 over a five-year period.
India's new GST structure—5%, 18%, and 40%—strikes a balance between consumer affordability and government revenue needs. Essentials and durables are cheaper, insurance and medicines are tax-free, and luxury items face higher taxation.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
The 40% GST is now a single consolidated rate for sugar-added, flavoured, or carbonated drinks, including cola, lemonade, and fruit-based fizzy beverages. The previous 12% compensation cess has been removed.
Australia's tax rate is the fourth lowest of the 32 OECD countries which have a VAT or GST and is around half the unweighted OECD average rate of 19.2 per cent. Hungary has the highest tax rate at 27 per cent, while Canada has the lowest tax rate at 5 per cent.
Significance of GST
Consumers have benefited from lower average tax rates and reduced costs on essential items, while the logistics sector has seen enhanced efficiency, reduced transport times, and significant investments.
Maharashtra has consistently been the highest taxpayer state in India, largely due to its status as the financial hub of the country. Cities like Mumbai and Pune contribute significantly to the state's tax revenues, driven by industries such as banking, technology, and manufacturing.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
In India, the 30% income tax rate generally applies to individuals earning above ₹24 Lakhs (under the old regime/default for some) or ₹15 Lakhs (under the new optional regime for FY 2025-26) and to firms (as a flat rate), while certain income types like lottery winnings, online gaming, and virtual digital assets (like crypto) are taxed at a flat 30% for everyone, regardless of total income.
Vijay Kelkar, as the Chairman of the Finance Commission and Kelkar Corporation, played a key role in the improvement of the GST regime. Former prime minister Atal Bihari Vajpayee is credited with founding GST in India and is often referred to as the 'Father of GST in India'.
As always, Maharashtra tops the list by becoming the highest GST collection state in India, facilitating the highest-ever gross GST revenue among all the states. Snapping at its heels were Karnataka, Tamil Nadu, Gujarat, and Delhi; each one portraying a vital role in uplifting India's tax base.
According to government reports, while over 7 crore people file tax returns, only a fraction of them actually pay taxes because many fall below the taxable income threshold or use deductions to reduce liability.
In her 2025 Budget speech, Finance Minister Nirmala Sitharaman shared big news. Under the new regime, if you earn up to Rs 12 lakh, you will not have to pay any income tax. Salaried taxpayers get an extra benefit too. The standard deduction, which was Rs 50,000 before, has now gone up to Rs 75,000 for the new regime.
India has approved a 40% GST rate on cigarettes, pan masala, and certain tobacco products as part of a "sin tax" to deter consumption and boost revenue. The 40% GST on these items takes effect from February 1, 2026, replacing the prior 28% GST plus compensation cess structure.
"Based on the requirement for payment to be received in full within this period, the specific timing constraints and our billing processes, PepsiCo Canada will continue charging GST/HST on qualifying products," said the letter obtained by the Western Standard.
All our prices are inclusive of GST.