GST Collections Surge Despite Tax Cuts: December 2025 Revenue Report

In December 2025, gross GST collections increased by 6.1% to over Rs 1.74 lakh crore, driven by domestic sales and import revenue growth. The reduction in GST rates on 375 items affected overall revenue, with refunds rising sharply by 31%. However, cess collection dropped significantly compared to the previous year.

In a notable development, gross GST collections in December 2025 surged by 6.1% to surpass Rs 1.74 lakh crore. This growth came amidst slow domestic sales revenue following significant tax cuts, as per government data released on Thursday.

When compared to December 2024's collections, there was a marked increase. Domestic transactions contributed Rs 1.22 lakh crore, a modest growth of 1.2%, while revenues from imported goods showed a substantial rise of 19.7% to Rs 51,977 crore. The upward trajectory in importing of goods aided overall revenue numbers.

Interestingly, refunds witnessed a notable increase of 31%, reaching Rs 28,980 crore. Despite overall gains, cess collection tumbled to Rs 4,238 crore from Rs 12,003 crore collected in the same month the previous year. This downturn was attributed to revised GST rates effective September 22, 2025, which involved a rate cut on 375 items, impacting revenue collections.

(With inputs from agencies.)