India's Goods and Services Tax (GST) collections demonstrated a moderate rise in December 2025, climbing to ₹1.74 lakh crore, a 6.1% increase compared to the ₹1.64 lakh crore collected in December of the previous year. This growth, while positive, reflects a slowdown in revenue from domestic sales, potentially influenced by recent tax cuts.

The gross revenue from domestic transactions saw a modest increase of 1.2%, reaching ₹1.22 lakh crore, while revenue from imported goods surged by 19.7% to ₹51,977 crore. After accounting for refunds, the net GST revenue stood at ₹1.45 lakh crore, representing a 2.2% year-on-year increase. Notably, cess collection experienced a dip, falling to ₹4,238 crore compared to ₹12,003 crore in the same month the previous year. The GST system has seen consistent growth in revenue collection, with the government crossing the ₹1.6 lakh crore mark per month.

The GST, implemented in July 2017, has transformed India's indirect tax landscape by replacing a complex web of taxes with a unified system. This has not only simplified tax compliance but also reduced costs for businesses and facilitated the seamless movement of goods across states. The consistent rise in revenue collections and a growing base of over 1.5 crore active taxpayers reflect its success.

In the fiscal year 2024-25, gross GST collections reached a record ₹22.08 lakh crore, marking a 9.4% increase compared to the previous fiscal year. The average monthly collection for the year stood at ₹1.84 lakh crore. The highest-ever GST collection was recorded in April 2025 at ₹2.36 lakh crore.

GST revenue growth has a significant and positive impact on economic growth in India. It has steadily strengthened India's fiscal position and made indirect taxation more efficient and transparent. The increase reflects the growing formalization of the economy and improved tax compliance. The government's timely reforms, clear guidance to taxpayers, and steady upgrades to the GST portal have further contributed to this success.

The GST Council, which includes representatives from the Union and State or Union Territory governments, determines GST rates in India. The current GST structure consists of four main rate slabs: 5 percent, 12 percent, 18 percent and 28 percent.

While challenges remain, such as regional disparities in revenue growth and compliance burdens for small businesses, the GST has largely been a success. The rising GST collection reflects improved compliance, formalization, and resilient consumption patterns.