India’s GST collection jumps 6.1 per cent to cross Rs 1.74 lakh crore in December

India’s GST (Goods and Services Tax) revenue for December 2025 reached Rs 1,74,550 crore, marking a 6.1% year-on-year increase from Rs 1,64,556 crore collected during the same period last year. This rise reflects an uptick in economic activity throughout the month, according to official data released on Thursday.

Central GST collections for the month stood at Rs 34,289 crore, while state GST revenue totaled Rs 41,368 crore. Integrated GST collections, which include imports, amounted to Rs 98,894 crore.

The government collected Rs 4,551 crore through the GST compensation cess, maintained temporarily until outstanding loans and interest liabilities are fully repaid. Annual cess collections declined to Rs 88,385 crore compared to Rs 1.1 lakh crore in 2024.

Though GST rates now include a higher 40% slab for luxury items, additional cess levies continue on tobacco and pan masala products.

December saw GST refunds worth Rs 28,980 crore, up from Rs 22,138 crore processed during the same month of the previous year.

The growth in GST collections comes despite recent tax rate reductions implemented on September 22, which appear to have stimulated consumer demand and economic momentum.

Separately, the Finance Ministry issued notifications paving the way for a revised tax framework on tobacco products, effective February 1, 2026.

The Central Excise (Amendment) Act, 2025, passed during Parliament’s Winter session, will take effect on February 1, 2026, introducing new excise duty rates for tobacco items. Simultaneously, provisions under the Health Security and National Security Act, 2025 will impose a cess on pan masala manufacturing starting the same date.

An official FAQ clarified that under the current GST framework, excise duty on cigarettes remains minimal (less than a paisa per stick), while the GST compensation cess on tobacco products hasn’t changed since its 2017 implementation.

(With inputs from IANS)