India’s‍ gross Goods and Services Tax ⁢(GST) collections rose 6.1 percent to over ₹1.74 trillion in December‍ 2025,⁤ according to⁣ recently released government data. ⁤This growth,‌ tho, represents a deceleration compared to the ₹1.64 trillion collected⁣ in December 2024.

Domestic ‌Sales and⁤ Import Contributions

The increase in overall GST revenue was driven by a 19.7 ⁢percent surge in revenues from ⁢imported goods, reaching ₹51,977 crore in December 2025.However, growth in‍ domestic transactions was⁣ more⁤ modest, increasing by ⁤1.2⁢ percent to over ₹1.22 trillion during the same period.

Impact of Rate Reductions and Cess Changes

The slower growth in domestic revenue is largely attributed ⁤to ‍the significant reduction in GST rates on​ approximately 375 items,which took⁢ effect on September 22,2025. these rate cuts ​were designed to lower costs for consumers, but have ‍demonstrably impacted government revenue.Moreover, ⁢the scope of the compensation cess was narrowed to apply solely‌ to tobacco products, shifting from a broader base that included⁣ luxury and demerit goods.

Refunds and Net Revenue

GST refunds increased substantially, rising 31 percent to ₹28,980 crore in December. After accounting for these ⁢refunds, net GST⁤ revenues still showed a positive‍ trend, reaching over ₹1.45 trillion – a‌ 2.2 percent year-over-year increase.

Cess Collection Declines

Collections from⁢ the compensation cess experienced⁣ a significant decline, dropping to ₹4,238 crore in December 2025, compared to ₹12,003​ crore ⁢collected ⁤in December 2024.This decrease is directly⁢ linked to the revised cess structure, focusing solely on tobacco products.