India’s GST collection rises 6.1% to Rs 1.74 lakh crore in December

India’s goods and services tax (GST) collection rose 6.1 per cent to Rs 1,74,550 crore in December 2025, up from Rs 1,64,556 crore in the same month last year, reflecting a boost in economic activity, official figures showed on Thursday.

Central GST (CGST) collections stood at Rs 34,289 crore, state GST (SGST) at Rs 41,368 crore, and integrated GST (IGST) at Rs 98,894 crore. The government also raised Rs 4,551 crore through the GST compensation cess, a transitory measure until outstanding loan and interest liabilities are settled. For April–December 2025, gross GST collections rose 8.6 per cent to Rs 16.5 lakh crore, compared with Rs 15.2 lakh crore in the same period last fiscal.

Despite the cut in GST rates effective September 22, collections grew as lower rates spurred consumer demand. Total GST refunds in December rose to Rs 28,980 crore from Rs 22,138 crore a year ago. The average monthly collection in 2025-26 so far stands at Rs 1.84 lakh crore, the highest since GST was launched in 2017.

Meanwhile, the Finance Ministry notified that new excise duties on tobacco products and a Health and National Security Cess on pan masala will come into effect from February 1, 2026. From this date, cigarettes, tobacco, and pan masala will attract a GST rate of 40 per cent, while biris will carry an 18 per cent GST rate. The current GST compensation cess on these sin goods will cease.

The GST Council, chaired by the Union Finance Minister, has played a key role in shaping the system since its formation in 2016, including rationalising rates from four slabs to two main rates—5 per cent and 18 percent—plus a 40 per cent rate for sin and luxury goods. The changes, first implemented on September 22, aim to reduce the tax burden while stimulating economic growth.