New Delhi. Gross GST collection increased by 6.1 percent in December last month to more than Rs 1.74 lakh crore. The pace of GST collection has slowed down due to slow growth in revenue from domestic sales after tax cuts. This information was received from government data released on Friday.
Gross Goods and Services Tax (GST) revenue in December 2024 was more than Rs 1.64 lakh crore. At the same time, after the reduction in GST rates in November 2025, the total collection was Rs 1.70 lakh crore. According to official data, gross revenue from domestic transactions rose 1.2 per cent to over Rs 1.22 lakh crore in December 2025 while revenue from imported goods rose 19.7 per cent to Rs 51,977 crore.
Its total gross GST collection stood at Rs 1,74,550 crore. Tax refunds in December increased by 31 percent to Rs 28,980 crore. Net GST revenue (after tax refund adjustment) stood at over Rs 1.45 lakh crore. This is 2.2 percent more than last year. Cess collection declined to Rs 4,238 crore last month, compared to Rs 12,003 crore in December 2024.
It is noteworthy that GST rates on about 375 items were reduced from September 22, 2025. This has made goods cheaper. While rationalizing the GST rates, the government has now kept only two rates at five percent and 18 percent, whereas earlier these were five, 12, 18 and 28 percent. Now a separate rate of 40 percent has been fixed on luxury and harmful items.
Moreover, compensation cess will now be levied only on tobacco and related products, whereas earlier cess was also levied on luxury goods. MS Mani, partner, Deloitte India, said the strong growth that was seen in the first half of FY 2025-26 has slowed down slightly due to the cut in GST rates from September 22. But the 6.1 percent increase in total collections shows that the impact of low rates is being offset by increased sales volumes in many companies.
Mani said it is a matter of concern that 17 states, including Delhi, Bihar, Madhya Pradesh, Telangana and Tamil Nadu, have recorded negative growth in GST collections. Many big states like Maharashtra, Karnataka, Andhra Pradesh and Haryana had only low single digit growth and very few states showed good positive growth at the beginning of this financial year.
“GDP has grown by over eight per cent and net GST domestic revenue has declined by 5.1 per cent in December 2025,” said partner, Tax Connect Advisory Services. The main reason for this is that a large part of the growth in GDP has come from government spending. The impact of government spending will be visible on consumption in the next six months to a year, due to which GST collections are likely to strengthen again in the financial year 2026-27.
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