GST collections rise in Dec, reflect steady economic activity

New Delhi, Jan 1 (UNI): Goods and Services Tax (GST) collections showed steady growth in December 2025, indicating stable economic activity and improved compliance. Total gross GST revenue for the month stood at Rs 1.74 lakh crore, registering a growth of over 6 per cent compared to December 2024.

On a cumulative basis, gross GST collections up to December 2025 crossed Rs 16.5 lakh crore, reflecting an annual growth of nearly 9 per cent.

Domestic GST collections during December remained largely stable, with marginal growth compared to the same month last year. Gross domestic revenue stood at Rs 1.22 lakh crore, while cumulative domestic collections for the year so far rose by nearly 7 per cent, highlighting sustained consumption and business activity within the country.

GST revenue from imports emerged as a key growth driver. Import-related GST collections in December rose sharply by nearly 20 per cent year-on-year, reaching Rs 51,977 crore.

On a cumulative basis, GST collected from imports increased by close to 14 per cent up to December 2025, pointing to higher import volumes and stronger trade activity.

Overall, total gross GST revenue — including domestic and import components — rose to Rs 1.74 lakh crore in December, compared to Rs 1.65 lakh crore a year earlier.

Cumulative gross GST collections for the financial year so far stood at Rs 16.5 lakh crore, underscoring the resilience of tax revenues despite global economic uncertainties.

Refunds under GST also increased during the month. Total refunds issued in December 2025 stood at nearly Rs 29,000 crore, reflecting a rise of over 30 per cent compared to the same period last year. Higher refunds were seen mainly on the domestic side, indicating faster settlement of taxpayer claims and improved liquidity for businesses.

After adjusting for refunds, net GST revenue for December 2025 was recorded at about Rs 1.46 lakh crore, marking a growth of over 2 per cent year-on-year. Cumulative net GST revenue collected up to December 2025 rose by nearly 7 per cent, reaching over Rs 14.25 lakh crore, providing stable revenue support to both the Centre and the States.

GST compensation cess collections declined during December, largely due to lower cess collection from domestic sources. The cess continues to operate as a transitional arrangement until the outstanding loan and interest liabilities are fully discharged.

State-wise data showed mixed trends, with several large states reporting moderate growth in GST revenues, reflecting regional variations in economic activity. Overall, the steady rise in GST collections points to improving compliance, stronger import activity, and consistent economic momentum as the year 2025 came to a close.

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