December GST Collections Rise 6% To Rs 1.74 Lakh Crore

The government mopped up Rs 1.74 lakh crore in Goods and Services Tax, registering a growth of 6.1% year-on-year, according to provisional data released on Thursday.

Central GST collections rose to Rs 34,289 crore, state GST collections to Rs 41,368 crore and integrated GST collections to Rs 98,894 crore.

For the calendar year 2025, gross GST collection rose 8.6% to Rs 16.5 lakh crore.

The gross GST collections in the final month of 2025 reflect continued revenue buoyancy, underscored by strong festive-season consumption and the positive impact of recent rate rationalisation measures, said Mahesh Jaising, partner and indirect tax leader at Deloitte India.

The government raised Rs 4,551 crore via the GST compensation cess, which is continuing only as a transitory arrangement till entire loan and interest liability are settled. The full-year collection was Rs 88,385 crore, compared to Rs 1.1 lakh crore in 2024.

The GST compensation cess, initially for five years ending June 2022, was extended to March, 2026, to repay the central government's Covid-era loans used to compensate states.

While phased out for most goods by late 2025 with new higher GST slabs like 40% for luxury items, the cess continues on tobacco and pan masala until those specific loans are repaid, with new excise duties being introduced to maintain tax incidence.

"The GST council’s policies have clearly translated into 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.

Total GST refund amounted to Rs 28,980 crore, a growth of 31% over last year.

Since refunds during a month are not necessarily related to economic activities in the previous month, the gross GST collections provide a more reliable indicator than the net GST collections, said MS Mani, partner at Deloitte India.