GST revenue touches Rs 1.74 lakh crore in December 2025; refunds jump 31 per cent

Gross Goods and Services Tax (GST) collections rose 6.1 per cent to over Rs 1.74 lakh crore in December 2025, according to government data released on Thursday, even as revenue growth from domestic transactions remained muted following sweeping tax cuts.

Gross GST revenue in December 2024 stood at over Rs 1.64 lakh crore.

Revenue from domestic transactions increased by 1.2 per cent to over Rs 1.22 lakh crore during December 2025.

In contrast, GST collections from imported goods rose sharply, registering a 19.7 per cent increase to Rs 51,977 crore during the month.

Refunds issued during December rose by 31 per cent year-on-year to Rs 28,980 crore.

After adjusting for refunds, net GST revenue stood at over Rs 1.45 lakh crore in December 2025, marking a 2.2 per cent increase compared with the same period last year.

Cess collections during the month declined sharply to Rs 4,238 crore, compared with Rs 12,003 crore collected in December 2024.

The moderation in revenue growth comes in the backdrop of GST rate reductions implemented with effect from September 22, 2025, when tax rates on around 375 items were slashed, leading to lower prices for several goods.

In addition, the compensation cess is now levied only on tobacco and related products, as against luxury, sin and demerit goods earlier. The reduction in GST rates has impacted overall revenue collections.