Overview

Net revenues from the Goods and‍ Services tax (GST) in India increased⁤ by 2.2 per ⁤cent year-on-year in December 2025, reaching ₹1.45⁢ trillion,‌ excluding⁤ GST compensation cess receipts. This marks the lowest ‍indirect tax collection since ⁢December 2024. Sequentially, December’s net GST revenues, reflecting transactions in ​November, were 4.3 per cent lower than November’s receipts, ‌which themselves experienced a ‌6.1 per cent month-on-month ⁤decline.

GST Rate Restructuring and Gross‍ Revenue ‌Trends

The GST rate structure ⁤underwent revisions for several items effective September 22, 2025. Gross GST revenues, ⁤before refunds⁣ and excluding cess‌ receipts, rose at a three-month high of 6.1 per cent to approximately​ ₹1.75 trillion. ⁢This ⁣represents a meaningful increase compared to the marginal 0.7 per cent uptick recorded in the previous month. Overall revenues were⁤ 2.5 per cent ⁤higher than November 2025,‌ contrasting⁤ with a 9.5 per cent sequential⁢ decline observed in November.

Impact‍ of ⁤Imports⁣ and Domestic Transactions

Much ‍of the gross revenue‍ growth ‍was driven by a surge in import revenues, which reached⁢ a three-month high of nearly ₹52,000 crore – a 19.7‍ per cent year-on-year increase. However, gross revenues ⁢from domestic transactions ​grew‌ by ⁣only 1.2 per ⁣cent in December, after a 2.3 per cent slip​ in november. These⁢ domestic collections, totaling just over ₹1.22 trillion,‍ were ⁣the lowest‌ in a year.

GST Compensation cess and Refunds

Net GST Compensation Cess receipts plummeted by approximately 64.7 per cent‌ to ₹4,238 crore in December, down from ₹12,003​ crore a year⁤ earlier. Including the cess, net GST receipts were 3 per ⁣cent lower ⁢year-on-year.The Finance Ministry has⁤ begun separating cess receipts from the overall GST tally, citing the compensation cess as ​a transitory arrangement.

Cess ‌is‍ not comparable as it is indeed continuing only on ​tobacco ‌and pan masala. The base⁣ is different, so we can’t include the Cess in the⁢ base of last year to compare⁣ current‍ revenues. The GST rate rationalisation‌ is⁤ an exercise autonomous of compensation cess. So Cess should not be included in the⁢ base for ⁣comparison purpose.

Refunds to taxpayers‌ reached nearly ₹29,000 crore in December, approximately⁢ 60 per cent higher than⁤ November and the highest‌ figure in fiscal year 2025-26⁢ (FY26). ⁣Refunds on domestic transactions surged 62 per cent year-on-year to over⁢ ₹18,400 crore, more than doubling the ₹8,700-odd‌ crore refunded in November. ​ Import refunds⁤ eased by 1.9 per cent to ₹10,558 crore but increased ⁤by 11.6‍ per cent month-on-month.

fiscal Year Performance (FY26)

For the first nine months of FY26, gross GST revenues⁢ have grown by 8.6 per cent to ⁢over ₹16.5 trillion, while net GST ⁣receipts are up 6.8 per cent at ₹14.25 trillion. GST compensation cess receipts‍ have declined by 19.7 per cent to a little over ₹88,000 crore ⁤during the same ​period.

state-Level Variations

Analysis ⁣by Deloitte India reveals ⁢concerning ⁢trends, with 17 ​states experiencing negative growth in GST collections. These include Delhi (-4 per cent), Bihar (-7 per cent),‌ Madhya Pradesh (-1 per cent), Telangana, and Tamil Nadu (-3 per⁢ cent each). Several large states also recorded​ low single-digit growth: Maharashtra (4 per cent), Karnataka (5 ‌per⁢ cent), ⁢Andhra pradesh‌ (2⁤ per cent), and Haryana (1 per​ cent).

State-wise GST Growth (December 2025)