GST Collection: In December 2025, the country’s gross GST collection increased by 6.1 percent year-on-year, reaching over ₹1.74 lakh crore. According to government data released on Thursday, January 1, this increase was limited compared to the previous year, indicating a slowdown in the momentum of GST revenue. In December 2024, the collection was slightly over ₹1.64 lakh crore.
Revenue from Domestic Transactions Remains Sluggish
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According to the data, gross GST revenue from domestic transactions in December 2025 registered only a marginal increase of 1.2 percent, rising to over ₹1.22 lakh crore. Experts believe that the recent reduction in GST rates has put pressure on tax collection from domestic sales.
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Sharp Increase in GST Revenue from Imports
While the pace of domestic collection remained slow, GST revenue from imported goods saw strong growth. Tax collection from imported goods increased by 19.7 percent in December, reaching ₹51,977 crore. This supported the overall gross GST collection.
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Sharp Increase in GST Refunds
GST refund figures in December 2025 also attracted attention. During this period, GST refunds increased by 31 percent, and the total refund amount was ₹28,980 crore. The increase in refunds impacted net GST revenue.
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Marginal Increase in Net GST Revenue
After adjusting for refunds, the net GST revenue was over ₹1.45 lakh crore. However, this is only 2.2 percent more than December 2024, indicating a slowdown in revenue growth. Meanwhile, cess collection decreased to ₹4,238 crore, compared to ₹12,003 crore a year earlier.
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New GST System and Slab Changes
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The government implemented a major change in the GST system on September 22, 2025. Under this new system, the 12 and 28 percent tax slabs were eliminated, leaving only two main slabs of 5 percent and 18 percent. In addition, a new tax slab of 40 percent was introduced for ultra-luxury goods.
Impact of Rate Cuts on Government Revenue
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Under the new system, GST rates were reduced on approximately 375 items, making many everyday goods cheaper. Furthermore, the previously applicable compensation cess was now limited only to tobacco and related products. The impact of these changes on the government’s tax revenue is clearly visible.