India’s Goods and Services Tax (GST) collections showed moderate growth in December 2025, reflecting steady economic activity despite recent tax rate cuts. Gross GST collections reached around ₹1.74–1.75 lakh crore, a 6.1 per cent increase compared with December 2024. The rise highlights strong compliance and sustained revenue generation across sectors amid structural reforms.
Net GST revenue, after accounting for refunds, rose 2.2 per cent to about ₹1.45 lakh crore. Collections from domestic transactions grew modestly by 1.2 per cent to roughly ₹1.22 lakh crore. GST on imports remained a key driver, surging nearly 20 per cent to around ₹52,000 crore. In contrast, the GST compensation cess, used to support states’ revenues, dropped by over 60 per cent following the removal of several cess items under the GST 2.0 structure.
The September 2025 GST reforms rationalised rates on many goods and services, making essentials more affordable but slightly slowing revenue growth in some categories. Nevertheless, overall collections reflect resilience, aided by sustained economic demand and compliance.
At the state level, Andhra Pradesh recorded its highest-ever December SGST collection of about ₹2,652 crore, up 5.78 per cent from last year. Gross collections reached ₹3,137 crore, positioning the state second among southern states in December and demonstrating robust local economic activity.
The combination of steady national growth and record state collections indicates that India’s indirect tax system continues to perform well, even as the economy adapts to post-reform changes.