India’s GST Collection in November Rises to ₹1.70 Lakh Crore

India’s gross Goods and Services Tax (GST) collection for November 2025 stood at ₹1.70 lakh crore, marking a modest year-on-year increase despite the impact of sweeping tax cuts announced earlier in the year. This performance highlights the resilience of India’s indirect tax system and the underlying strength of consumption and compliance trends.

GST Performance Overview

The November collection reflects a steady trajectory in tax revenues, even as the government implemented rate rationalizations across multiple sectors to boost demand. The rise in collections suggests that higher compliance, digital monitoring, and widening of the tax base have offset the revenue impact of tax reductions.

  • Year-on-Year Growth: Collections were slightly higher compared to November 2024, indicating sustained economic activity.
  • Sectoral Contribution: Manufacturing, services, and retail trade continued to be major contributors, while real estate and construction showed incremental gains.
  • Compliance Improvements: Enhanced e-invoicing and stricter anti-evasion measures helped maintain revenue buoyancy.

Impact of Tax Cuts

Earlier in 2025, the government introduced sweeping tax cuts aimed at stimulating consumption and easing the burden on businesses. While there were concerns about potential revenue shortfalls, November’s GST figures demonstrate that the broader economy has absorbed these changes effectively. Increased consumer spending, particularly in festive months, has supported collections.

Economic Context

The GST performance comes against the backdrop of India’s strong GDP growth of 8.2% in Q2, which has reinforced confidence in the country’s economic trajectory. However, challenges remain in the form of global uncertainties, currency pressures, and FII outflows that continue to influence overall market sentiment.

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Conclusion

India’s November GST collection of ₹1.70 lakh crore underscores the robustness of the tax system and the resilience of the economy despite policy changes. The figures highlight how compliance measures and consumption growth have balanced the impact of tax cuts. For businesses and investors, this stability in revenue collection is a positive signal, reinforcing confidence in India’s fiscal outlook.

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Market Overview – December 1, 2025

The first trading session of December began on a strong note, with the Sensex and Nifty scaling fresh lifetime highs during early trade. The Sensex touched 86,159 while the Nifty crossed 26,325, buoyed by optimism around India’s robust GDP growth of 8.2% in Q2. However, the rally proved short-lived as selling pressure intensified later in the day.

By market close, the Nifty 50 fell 150 points to 26,175, while the Sensex dropped 531 points to 85,625. The rupee’s slide to a new all-time low against the US dollar and continued foreign institutional investor (FII) outflows weighed heavily on sentiment. Additionally, fading hopes of an RBI rate cut added to the cautious mood.

Top Gainers

  • Wockhardt: Pharma stocks surged as investors bet on defensive sectors amid currency volatility.
  • JM Financial: Strong institutional activity and optimism in financial services pushed the stock higher.
  • TVS Motor: Auto sales data supported gains, with two-wheeler demand showing resilience.
  • Hindustan Copper: Commodity-linked stocks benefited from global supply concerns.
  • Paytm: The fintech major rebounded on expectations of improved transaction volumes during the festive season.

Top Losers

  • ITC: Profit-booking dragged the FMCG heavyweight lower.
  • Titan: Weak consumer sentiment in discretionary spending impacted the stock.
  • TCS: IT stocks faced pressure amid global uncertainty and cautious outlook on US tech spending.
  • Asian Paints: Rising input costs and muted demand weighed on performance.
  • Max Healthcare, Bajaj Finance, Sun Pharma: These names also featured among the session’s notable losers.

Key Drivers of Market Movement

  1. Currency Pressure: The rupee’s record low against the dollar created headwinds for equities.
  2. FII Selling: Persistent foreign investor outflows capped gains despite strong domestic fundamentals.
  3. Global Cues: Mixed signals from Asia-Pacific markets and uncertainty around US Federal Reserve policy added volatility.
  4. Profit-Booking: After record highs, traders locked in gains, leading to a sharp reversal.

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Conclusion: December 1 highlighted the dual nature of markets — strong fundamentals like GDP growth can lift indices to record highs, but external pressures such as currency weakness and FII selling can quickly reverse momentum. Investors should remain cautious, diversify portfolios, and rely on professional research to navigate such volatility.

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