India's Goods and Services Tax (GST) revenue demonstrated robust growth in December 2025, rising by 6.1% to reach Rs 1,74,550 crore. This positive trend, driven significantly by higher levies on imports, provides the government with confidence that collections are strengthening even after a major overhaul of the tax structure which involved rate cuts on hundreds of items.
Breaking Down the December 2025 GST Numbers
The latest data reveals a nuanced picture of the tax landscape. When including the compensation cess, which is now applicable only to tobacco and pan masala, the total collection for December 2025 stood at Rs 1,78,788 crore. This figure is 1.1% higher than the Rs 1,76,857 crore collected in December 2024, indicating a steady upward trajectory.
A key highlight is the divergent performance between domestic and import-based collections. Revenue from domestic transactions saw a modest increase of 1.2% to Rs 1,22,574 crore. In stark contrast, collections from imports surged by a substantial 19.7% to Rs 51,977 crore, acting as the primary engine for overall growth.
Expert Views on Consumption and Tax Rationalisation
Tax experts interpret this data as a clear sign of reviving consumption, spurred by the recent rationalisation of GST rates. M S Mani, Partner at Deloitte India, stated that the gross collection growth indicates consumption is on an upswing. He noted that volume growth in many businesses is compensating for the lower tax rates, a trend supported by healthy GDP data.
The government had anticipated a temporary impact on collections following the rate cuts on 375 goods and services. However, the current figures suggest the strategy is working as intended. Saurabh Agarwal, Tax Partner at EY India, remarked that the moderation in domestic GST growth aligns with expectations post-rationalisation. He described it as a move prioritising long-term tax harmony over immediate revenue gains.
State-Wide Performance and Net Collections
The growth was not uniform across all states. Maharashtra, Uttarakhand, Gujarat, Haryana, Sikkim, and Bihar reported healthy double-digit growth in their GST mop-up. On the other hand, states like Chhattisgarh, Jharkhand, and Odisha witnessed the sharpest declines.
On a net basis, after accounting for refunds, the GST collection was 2.2% higher at Rs 1,45,570 crore. Refunds saw a significant jump of 31% to Rs 28,980 crore, particularly on domestic transactions, as part of the government's parallel effort to harmonise the refund process alongside the rate restructuring.
The cumulative collection for the period from April to December 2025 has grown by a strong 8.6%, reinforcing the view of a broadening economic recovery where lower tax rates are encouraging higher consumption across several sectors.
