GST collections rise 6.1% in December to Rs 1.75 lakh crore

India’s gross Goods and Services Tax (GST) collections rose 6.1 per cent year-on-year in December to around Rs 1.75 lakh crore, up from about Rs 1.64 lakh crore in the same month last year, according to official data released on Thursday. The latest numbers underscore the resilience of tax revenues amid steady economic activity.

The December performance showed growth in both Central GST (CGST) and State GST (SGST) collections, while Integrated GST (IGST) declined on a year-on-year basis. Despite the dip in IGST, overall collections remained robust, reflecting continued domestic demand and improved compliance.

For the April–December period of the current financial year 2025–26, gross GST collections increased by 8.6 per cent to approximately Rs 16.5 lakh crore, compared with Rs 15.2 lakh crore during the corresponding period of the previous fiscal. All major components—CGST, SGST and IGST—registered growth during this nine-month period, pointing to broad-based revenue expansion.

India’s GST system had earlier achieved a significant milestone in 2024–25, when it recorded its highest-ever gross collection of Rs 22.08 lakh crore, marking a 9.4 per cent rise over the previous year. The average monthly GST collection during 2024–25 stood at Rs 1.84 lakh crore, the highest since the indirect tax regime was rolled out in 2017.

Over the past few years, GST revenues have shown a consistent upward trend, increasing from Rs 11.37 lakh crore in 2020–21 to Rs 20.18 lakh crore in 2023–24. This rise reflects stronger economic activity, wider tax base coverage and improved compliance mechanisms.

The GST Council, established in 2016 to guide policy and reforms, has played a key role in this progress. Since its formation, the Council has held 56 meetings aimed at simplifying the tax structure and making the GST regime more business-friendly.

In a major reform announced on September 3, 2025, the Council unveiled next-generation GST rationalisation, reducing the structure to two primary rates—5 per cent and 18 per cent—along with a 40 per cent special rate for select luxury and sin goods, signalling a new phase in India’s indirect tax framework.