December GST Revenue Crosses Rs 1.74 Lakh Crore Even As Rate Cuts Bite
In November 2025, the first month reflecting the full impact of the GST cut on revenues, collection was Rs 1.70 lakh crore.
Gross GST collections rose 6.1 per cent to over Rs 1.74 lakh crore in December 2025, even as sweeping tax cuts slowed down growth in revenues from domestic transactions, according to government data released on Thursday.
The gross Goods and Services Tax (GST) revenue in December 2024 was over Rs 1.64 lakh crore. In November 2025 -- the first month reflecting the full impact of the GST cut on revenues, collection was Rs 1.70 lakh crore.
Gross revenue from domestic transactions rose 1.2 per cent to over Rs 1.22 lakh crore, while revenues from imported goods were up 19.7 per cent at Rs 51,977 crore during December, 2025. This took the total gross GST revenue to Rs 1,74,550 crore.
Refunds were increased 31 per cent to Rs 28,980 crore in December.
Net GST revenues (after adjusting refunds) stood at over Rs 1.45 lakh crore, up 2.2 per cent year-on-year.
Cess collection last month dipped to Rs 4,238 crore compared to Rs 12,003 crore in December 2024.
Effective September 22, 2025, GST rates on about 375 items were slashed, making goods cheaper. The government had rationalised GST tax rates to just two rates of 5 per cent and 18 per cent, with effect from September 22, from 5, 12, 18 and 28 per cent previously.
A separate 40 per cent rate has been fixed on ultra-luxury and demerit goods. Also, the compensation cess is levied only on tobacco and related products against luxury, sin and demerit goods earlier.
Deloitte India Partner MS Mani said while the strong growth seen in the first six months of FY26 seems to have tapered down on account of the sharp reduction in GST rates from September 22, gross collection growth of 6.1 per cent shows the volume growth in many businesses is making up for the lower rates associated with these volumes.
"It is a matter of concern that seventeen states, including Delhi, Bihar, MP, Telangana and Tamil Nadu, have recorded a negative growth in GST collections. Many large states such as Maharashtra, Karnataka, Andhra Pradesh and Haryana have recorded low single-digit growth, and very few states have registered a good positive growth as evidenced in the earlier part of the current fiscal year," Mani said.
Grant Thornton Bharat Partner and Tax Controversy Management Leader Manoj Mishra said strong contributions from Maharashtra, Gujarat, Karnataka and Haryana continue to anchor revenues.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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