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India's GST Revenue Hits Record Rs 1.74 Lakh Crore in December 2025

India's Goods and Services Tax (GST) collection surged to Rs 1.74 lakh crore in December 2025, marking a 6.1% year-on-year increase driven by heightened economic activity. Integrated GST formed the largest share at nearly Rs 99,000 crore, while refunds also saw a significant rise. The government confirmed the GST compensation cess will continue as a transitory measure until outstanding loans are settled. Concurrently, new excise duty rates under the Central Excise (Amendment) Act, 2025, will take effect for tobacco products from February 1, 2026.

Key Points: GST Collection Hits Rs 1.74 Lakh Crore in Dec 2025 | 6.1% Growth

  • 6.1% annual growth in GST
  • Integrated GST leads at Rs 98,894 crore
  • New excise regime for tobacco from Feb 2026
  • Refunds rise to Rs 28,980 crore
2 min read

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

India's GST revenue grew 6.1% to Rs 1.74 lakh crore in Dec 2025. Explore the breakdown of CGST, SGST, IGST, and key policy changes on tobacco.

India's GST collection jumps 6.1 per cent to cross Rs 1.74 lakh crore in December
"The GST collection has registered a growth despite the cut in tax rates... leading to an increase in economic activity. - Finance Ministry Data"

New Delhi, Jan 1

India's GST collection recorded a 6.1 per cent increase to Rs 1,74,550 crore in December 2025 compared to Rs 1,64,556 crore the same month of the previous year, reflecting the increase in economic activity during the month, official figures released on Thursday showed.

Central GST collections rose to Rs 34,289 crore, state GST collections to Rs 41,368 crore, and integrated GST collections to Rs 98,894 crore.

The government raised Rs 4,551 crore via the GST compensation cess, which is continuing only as a transitory arrangement till the entire loan and interest liability are settled. The full-year collection was Rs 88,385 crore, compared to Rs 1.1 lakh crore in 2024.

While there are new higher GST slabs like 40 per cent for luxury items, the cess continues on tobacco and pan masala.

Total GST refunds in December amounted to Rs 28,980 crore, compared with Rs 22,138 crore in the same month of the previous year.

The GST collection has registered a growth despite the cut in tax rates that kicked in on September 22, as this has resulted in an increase in the demand for goods and services by consumers, leading to an increase in economic activity.

Meanwhile, the Finance Ministry on Thursday also issued a series of notifications that would bring into effect the new tax regime for tobacco products from February 1, 2026.

It was notified that the Central Excise (Amendment) Act, 2025, passed in the recently-concluded Winter session of Parliament, would come into force from February 1, 2026. This Act specifies new rates of excise duty on tobacco products. It also notified that the provisions of the Health Security Se National Security Act, 2025, which currently levies a cess on the manufacture of pan masala, will come into force from February 1, 2026

The ministry also released an FAQ list to explain that, under the Goods and Services Tax regime, the excise duty on cigarettes had so far been rendered a nominal amount of a "fraction of a paisa" per cigarette stick, and that the GST compensation cess rate on tobacco products had not been increased since it was implemented in July 2017.

- IANS

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Reader Comments

P
Priya S
Good numbers, but I have a question. The refunds have also increased significantly (from ~22k to ~29k crore). While overall collection is up, does this higher refund amount indicate more businesses are claiming back taxes? Could be a sign of working capital stress for SMEs.
R
Rohit P
Finally some action on tobacco and pan masala! The new excise duty and cess from Feb 2026 is much needed. These products cause huge health burdens. The revenue should be strictly used for public health initiatives. It's high time.
S
Sarah B
As a small business owner, the GST process is still quite complex. The increase in collection is good for the treasury, but I wish some of this efficiency and revenue could be used to further simplify compliance for us. The portal has improved, but there's a long way to go.
V
Vikram M
Rs 1.74 lakh crore! That's a massive number. It shows the formalization of the economy is progressing. However, the 40% slab for luxury items feels a bit steep. While I understand the intent, it might dampen certain high-end manufacturing sectors. A balanced approach is key.
M
Meera T
The article mentions the compensation cess is a transitory arrangement. When will states get their full share without this mechanism? As someone from a southern state, we often hear about delays. Clarity and timely devolution are crucial for state-level development projects.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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