Data released Sunday (for August 2025) showed gross revenue was Rs 1.86 lakh crore, up from was Rs 1.75 lakh crore a year ago, an increase of 6.5 per cent.

New Delhi:Rationalisation of the Goods and Services Tax framework - a process that began this morning with Finance Minister Nirmala Sitharaman chairing a GST Council meet - is based on sharp differences in revenue collected under each of the existing four slabs, sources told NDTV.

Sources said tax collected from the 18 per cent slab over the past eight years accounted for over two-thirds of the total GST revenue, i.e., about 67 per cent, in that time. Conversely, the 12 per cent slab generated the lowest, an estimated five per cent of the inflow in the same period.

The five and 28 per cent slabs yielded seven and 11 per cent, respectively.

Based on this data, the Group of Ministers' recommendation was to eliminate two slabs - the 12 per cent because the revenue yield is insignificant, and the 28 per cent because it should prompt manufacturers to cut prices of luxury goods.

It has been argued the high GST on these - seen as 'aspirational' items by India's large middle class - actually discourages consumption.

Source:Ndtv