India’s Goods and Services Tax (GST) collections for December 2025 recorded a 6.1% year-on-year increase, with gross GST revenue reaching ₹1.74 lakh crore, compared to ₹1.64 lakh crore in December 2024, reflecting steady revenue mobilisation despite moderation in domestic consumption.
Domestic GST Growth Remains Modest
Domestic GST collections showed limited momentum during the month. Gross domestic revenue stood at ₹1.22 lakh crore, marking a 1.2% increase over December 2024. While CGST rose marginally to ₹34,289 crore and SGST increased to ₹41,368 crore, domestic IGST declined slightly to ₹46,917 crore, indicating subdued inter-State supply activity.
On a cumulative basis, domestic GST revenue for April–December 2025 grew 6.8% year-on-year, reaching ₹12.08 lakh crore, reflecting stable but cautious economic expansion.
Imports Fuel GST Revenue Surge
The key driver of December’s growth was GST collected on imports, where IGST on imports surged 19.7% to ₹51,977 crore, compared to ₹43,438 crore in December 2024. This reflects higher import volumes and valuation effects amid global supply chain realignments.
Cumulatively, import-related GST collections rose 13.8% during April–December 2025, touching ₹4.41 lakh crore, significantly outperforming domestic GST growth.
Refunds Rise Sharply, Impacting Net Domestic Revenue
GST refunds witnessed a substantial jump in December 2025. Total refunds increased 30.9% to ₹28,980 crore, primarily due to a sharp rise in domestic refunds, which jumped 62% year-on-year. Export-related IGST refunds through ICEGATE, however, remained largely stable.
As a result, net domestic GST revenue declined 5.1% in December 2025 to ₹1.04 lakh crore, despite higher gross collections. In contrast, net GST revenue from imports rose 26.8%, cushioning the overall impact.
Net GST Revenue Shows Moderate Growth
After adjusting for refunds, total net GST revenue for December 2025 stood at ₹1.45 lakh crore, registering a 2.2% increase over the previous year. For the April–December period, net GST collections grew 6.8%, reaching ₹14.25 lakh crore, underscoring resilience in tax administration and compliance.
Compensation Cess Collections Decline
Compensation cess collections dropped sharply in December 2025. Net cess revenue fell to ₹4,238 crore, compared to ₹12,003 crore in December 2024, reflecting reduced levy applicability and continued use of cess collections for repayment of GST compensation loans.
State-wise GST Settlement Trends
Post-settlement SGST collections for States and Union Territories rose 6% year-on-year in December 2025. Large States such as Maharashtra, Gujarat, Karnataka, Tamil Nadu, and Uttar Pradesh continued to contribute the bulk of State GST revenues.
Maharashtra led with ₹9,852 crore in December SGST collections, followed by Gujarat at ₹3,549 crore and Karnataka at ₹3,816 crore. Northeastern States such as Arunachal Pradesh, Meghalaya, and Nagaland recorded strong percentage growth, albeit on a lower base, indicating improved tax compliance.
Cumulative State GST Collections Strengthen
For the period April–December 2025, post-settlement SGST revenues for all States and UTs rose 6%, reaching ₹7.57 lakh crore. States such as Haryana, Maharashtra, Assam, and Gujarat recorded double-digit growth, reinforcing fiscal stability at the sub-national level.
Outlook
The December GST data highlights a shift in revenue composition, with imports and improved settlement mechanisms compensating for slower domestic growth. While rising refunds have temporarily impacted net domestic revenue, sustained compliance and robust import activity continue to support overall GST performance.
The figures are provisional and may undergo minor revisions upon final reconciliation.
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