New Delhi17 minutes ago
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GST collection has increased by 6.1% in December 2025 and has crossed Rs 1.74 lakh crore. According to government data released on January 1, this figure was ₹1.64 lakh crore in December 2024. The collection has increased despite the reduced tax rates in September.
If we analyze the data for the month of December, the earnings from import of foreign goods have increased by 19.7%. Total tax collected from imports was ₹51,977 crore. However, growth in domestic transactions was a bit sluggish and grew by just 1.2% to ₹1.22 lakh crore.
31% jump in tax refunds, net revenue ₹1.45 lakh crore
Refunds increased by 31% to ₹28,980 crore in the month of December. If refunds are removed from the total collection, the government’s ‘net GST revenue’ is ₹1.45 lakh crore.
Cess collection came to ₹4,238 crore, earlier it was ₹12,003 crore.
Cess collection has reduced in December 2025. This reduced to just ₹4,238 crore. One year ago i.e. in December 2024, cess of ₹ 12,003 crore was received.
The reason for this is that under the new rules applicable from 22 September 2025, now cess is being collected only on tobacco and its related products. Earlier it was also applicable on luxury and ‘sin goods’. This included things like expensive cars and soft drinks.
Revenue slowed down due to tax cuts
The main reason for the slow pace of domestic revenue is believed to be the tax cut made on many goods in September. Taking a big decision in September, the government had reduced GST rates on about 375 goods. The objective of this decision was to increase domestic consumption and provide relief to the people.
Due to low tax rate, the growth of revenue collection at the domestic level has been affected, but the government believes that this will increase the volume in the long run.
Highest tax collection was in April 2025
The government had collected Rs 2.37 lakh crore from Goods and Services Tax (GST) in April 2025. There was an increase of 12.6% on annual basis. This is the record of GST collection.
Earlier, the record of highest GST collection was made in April 2024. Then the government had raised Rs 2.10 lakh crore.
GST collection shows the health of the economy
GST collection tells us how healthy the country’s economy is. If the collection is high, it means that people are purchasing heavily, production in factories is increasing and people are paying taxes honestly.
GST was implemented in 2017
The government implemented GST across the country on July 1, 2017. After this, 17 taxes and 13 cesses of the Central and State Governments were removed.
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