India’s GST cuts, which came into effect on September 22, 2025, appear to have done more than simply lower sticker prices. A year on, they are reshaping what consumers buy-- from two-wheelers and entry-level cars to larger television screens-- even as higher input costs and geopolitical uncertainty threaten to take some of the shine off the consumption recovery.
Gross GST collections have stayed above the Rs 1.9 lakh crore mark in recent months, rising 14.8% year-on-year to nearly Rs 2 lakh crore in August 2026. Domestic GST revenue rose 9.3% during the month, while the April-June quarter had already seen gross collections rise 8.4% to Rs 6.32 lakh crore. The numbers do not measure consumption directly, and import taxes have contributed significantly to the recent rise, but they point to economic activity holding up even as consumers navigate higher costs and geopolitical uncertainty.
