Strong demand, record tax! GST collection increased by 6.1% in December; India’s big victory amid recession

GST Collection In December 2025: Goods and Services Tax (GST) collection has increased by 6.1 percent on an annual basis to Rs 1,74,500 crore in December 2025. It was Rs 1,64,556 crore in the same period last year. This information was given by the government on Thursday. In December 2025, Central GST collection has increased to Rs 34,289 crore, State GST collection has increased to Rs 41,368 crore, IGST collection has increased to Rs 98,894 crore.

Apart from this, the government has issued GST refund of Rs 28,980 crore in December. There has been an increase of 31 percent on annual basis. This takes the net GST collection to Rs 1.45 lakh crore.

GST collection for the whole year?

The government raised Rs 4,551 crore through GST Compensation Cess, which continues as a temporary arrangement till the entire loan and interest liability is settled. The collection for the full year stood at Rs 88,385 crore, while in 2024 it was Rs 1.1 lakh crore. The GST Compensation Cess, which was initially for five years till June 2022, was extended till March 2026 to compensate states for repayment of the central government’s Covid-era loans.

40% tax on luxury products

Compensation cess has been completely abolished in the new GST framework. A tax of 40 percent has been imposed on luxury goods. GST collection in the April-December period of financial year 2025 has increased by 8.6 percent on an annual basis to Rs 16.5 lakh crore, which was Rs 15.19 lakh crore in the same period last year. Earlier in November, GST collection stood at Rs 1,70,276 crore. It has seen an increase of 0.7 percent on annual basis. It was Rs 1,69,016 crore in the same period last year. At the same time, due to festive sales, GST collection in October was Rs 1,95,936 crore.

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Important changes in GST slab

The main objective of the change in GST slab is to simplify the tax structure and provide relief to the common man. Under the recent changes, many essential items are being considered to be removed from the higher slab of 12% and 18% to the bracket of 5%, which will make daily consumption items cheaper. The positive effect of these changes was that the savings of the middle class increased and market demand I accelerated.