India's Goods and Services Tax (GST) collections demonstrated a healthy increase in December 2025, reaching ₹1.75 lakh crore, a 6.1% rise compared to the ₹1.64 lakh crore collected in December of the previous year. This growth reflects sustained economic activity and improved compliance.

The gross GST revenue includes ₹1,22,574 crore from domestic transactions, which is a 1.2% increase year-on-year, and ₹51,977 crore from imports, marking a significant 19.7% increase over the last year. After refunds, the net GST revenue for December 2025 stood at ₹1,45,570 crore, a 2.2% increase from ₹1,42,417 crore in December 2024. Net domestic GST revenue saw a slight decrease of 5.1% to ₹38,208 crore, while net GST from imports grew substantially by 26.8% to ₹41,419 crore.

Cumulatively, the gross GST collections from April to December 2025 totaled ₹16.50 lakh crore, representing an 8.6% increase over the same period last year. The cumulative net GST revenue for the same period grew by 6.8% to ₹14,25,006 crore. Post-settlement State GST (SGST) for December 2025 increased by 6% to ₹79,584 crore, compared to ₹75,355 crore in December 2024, while pre-settlement SGST rose by 2% to ₹41,368 crore.

In December, collections from Central GST (CGST) and State GST (SGST) registered growth, while Integrated GST (IGST) declined year-on-year. Several industrialized states maintained strong growth, while some smaller regions experienced contractions. Arunachal Pradesh (7%), Manipur (8%), Meghalaya (8%), and Assam (5%) recorded positive growth in post-settlement revenues.

The compensation cess, intended as a transitional measure until loan and interest liabilities are cleared, experienced a sharp decline. The net cess revenue was ₹4,238 crore in December, down from ₹12,003 crore the previous year, marking a 64.7% decrease.

For the fiscal year 2024-25, GST collections reached a record ₹22.08 lakh crore, a 9.4% increase from the previous year, with average monthly collections at ₹1.84 lakh crore. GST revenues have consistently increased, from ₹11.37 lakh crore in 2020-21 to ₹20.18 lakh crore in 2023-24, indicating stronger economic activity and improved compliance.

The GST Council, which includes the Union Finance Minister and state finance ministers, has been instrumental in shaping and reforming the indirect tax system. Since 2016, the council has held 56 meetings, implementing various decisions to simplify the tax structure and make the GST regime more business-friendly. In September 2025, significant reforms were announced under next-generation GST rationalization, following an outline by Prime Minister Narendra Modi during his Independence Day address.