India's Goods and Services Tax (GST) revenue has demonstrated robust growth, with collections for December 2025 reaching a significant milestone. The gross GST revenue collected stood at Rs 1.75 lakh crore, marking a 6.1 per cent increase compared to the collections in the same month of the previous year.
Strong Performance in the First Nine Months of FY26
The positive trend is not confined to a single month. For the entire April-December period of the fiscal year 2025-26, the total GST collections have shown massive growth. The cumulative collection for these nine months reached Rs 16.5 lakh crore. This figure represents a substantial 8.6 per cent jump from the Rs 15.2 lakh crore collected in the corresponding period of the last financial year. Both the central and state government components of the GST contributed to this positive growth trajectory.
A Landmark Year and Structural Reforms
This consistent performance follows an exceptional year for the indirect tax regime. The preceding fiscal year, 2024-25, proved to be a landmark period for GST, with total collections hitting an all-time high of Rs 22.08 lakh crore. This was a 9.4 per cent increase from the year before. Consequently, the average monthly collection rose to its highest level since the launch of GST in 2017, standing at an impressive Rs 1.84 lakh crore.
The sustained growth in revenue comes in the wake of major structural reforms to the GST system. A key change was the simplification of the tax structure, which moved from four primary tax slabs to two main rates of 5 per cent and 18 per cent. A special higher rate of 40 per cent was retained for luxury goods.
Significant Overhaul and Future Outlook
The most significant overhaul of the system was recently implemented following reforms announced by Prime Minister Narendra Modi from the Red Fort on Independence Day. These changes were rolled out from the first day of Navratri. The reforms aim to achieve a dual objective: reducing the tax burden on citizens while simultaneously promoting economic growth through a simpler and more efficient tax structure.
Since its formation in 2016, the GST Council has held 55 meetings, taking several key decisions aimed at streamlining the GST framework and making it more business-friendly. The recent data on collections suggests that these efforts, combined with broader economic factors, are yielding positive results for the nation's exchequer.
