India's Goods and Services Tax (GST) collections in December 2025 climbed to Rs 1.75 lakh crore, marking a 6.1% increase compared to the same month last year. The Finance Ministry released this official data on Thursday, January 1, 2026, indicating sustained revenue momentum despite recent tax reforms. Gross collections stood at Rs 1,74,550 crore for the month.This strong performance highlights a positive trajectory for the Indian economy.[a2ztaxcorp+5]
Revenue Streams Show Mixed Growth
Domestic GST revenue contributed Rs 1,22,574 crore in December 2025, showing a modest 1.2% rise from the previous year.In contrast, GST revenue from imports demonstrated robust growth, surging by 19.7% to reach Rs 51,977 crore.This significant increase in import-related GST played a key role in the overall collection figures. After accounting for refunds, the net GST revenue for December 2025 stood at Rs 1,45,570 crore, a 2.2% year-on-year increase.[a2ztaxcorp+7]
The cumulative gross GST collections for the first nine months of the current financial year, from April to December 2025, reached Rs 16,50,039 crore. This represents an 8.6% growth compared to Rs 15,19,797 crore collected during the corresponding period of the previous fiscal year.All major components of GST—Central GST (CGST), State GST (SGST), and Integrated GST (IGST)—recorded growth during this cumulative period. However, for December alone, Integrated GST saw a year-on-year decline, while CGST and SGST collections rose.[a2ztaxcorp+5]
Impact of Recent Tax Reforms
The sustained growth in GST collections comes after significant reforms implemented on September 22, 2025. These "GST Reforms 2.0" included a sweeping rate cut across various sectors. TheGST Council decided to simplify the tax structure, moving from a four-slab system to a two-slab structure (5% and 18%) for most items. A special 40% rate applies to luxury or demerit goods. This reform aims to ease the financial burden on households and stimulate economic activity.[a2ztaxcorp+5]
Mahesh Jaising, Partner & Indirect Tax Leader at Deloitte India, commented on the trends. He noted that the GST Council's policies have clearly resulted in higher compliance and improved cash flows across sectors. "These trends indicate that even post the GST 2.0 path breaking tax rate reductions, the tax system continues to mature, demonstrating both elasticity and stability as the economy scales," Jaising said. Saurabh Agarwal, Tax Partner at EY India, highlighted robust performance in regions like the Northeast and Odisha, suggesting deeper consumption and increased development in these areas.[a2ztaxcorp+3]
Broader Economic Context
The latest figures build on a strong foundation from the previous fiscal year. India's GST system achieved a major milestone in 2024-25, recording its highest-ever gross collection of Rs 22.08 lakh crore. This marked a 9.4% increase over the prior year. Theaverage monthly GST collection in 2024-25 stood at Rs 1.84 lakh crore, the highest since the GST regime launched in 2017.[ddnews+5]
GST revenues have shown a consistent upward trend over recent years. Collections rose from Rs 11.37 lakh crore in 2020-21 to Rs 20.18 lakh crore in 2023-24. This steady increase reflects stronger economic activity across the country and improved compliance with tax regulations. TheGST Council, chaired by the Union Finance Minister and including state finance ministers, plays a crucial role in shaping and refining the indirect tax system. TheCouncil has held 56 meetings since its formation in 2016, making numerous decisions to simplify the tax framework and make it more business-friendly.[ddnews+10]
The sustained growth in December's GST collections, particularly the healthy rise in import revenues, suggests resilience in India's economic landscape. Despite the recent rate cuts, the tax system continues to generate substantial revenue, supporting both central and state government finances. The government's focus on simplifying the tax structure and promoting compliance appears to be yielding positive results, contributing to overall economic stability and growth.[english]
