The average Goods and Services Tax (GST) rate has fallen to 10.84 per cent following the rationalisation of GST rates in September last year, sources said.
The average rate stood at 11.4 per cent in 2023. The latest decline comes after the GST Council restructured the indirect tax regime by reducing the number of tax slabs.
GST Rate Structure Rationalised
At the time of the launch of the Goods and Services Tax on July 1, 2017, the revenue neutral rate (RNR) was calculated at 15.8 per cent.
In September last year, the GST Council rationalised the four-slab structure of 5, 12, 18 and 28 per cent into a two-slab structure of 5 and 18 per cent.
A 40 per cent GST rate was also introduced for sin and luxury goods.
GST Collections Grow Despite Rate Cuts
Briefing reporters after the 57th GST Council meeting on Thursday, Finance Minister Nirmala Sitharaman said GST revenues had continued to grow despite the rate cuts announced in September.
GST collections in the first six months of the financial year 2026-27 grew 11.6 per cent to Rs 12.46 lakh crore.
No Discussion On GST For UPI Transactions Above Rs 2,000
Sitharaman also said the GST Council did not discuss the issue of levying GST on Merchant Discount Rate (MDR) for UPI transactions above Rs 2,000.
The issue was not taken up for discussion at the meeting, according to the finance minister.
