GST collections rise 6.1% in December 2025 to over ₹1.74 trillion, driven by imports

India’s gross Goods and Services Tax (GST) collections rose 6.1% year-on-year in December 2025 to over ₹1.74 trillion, according to government data. The increase was supported by stronger import-linked receipts, while collections from domestic transactions grew at a slower pace in the backdrop of recent tax-rate cuts affecting hundreds of goods and services.

The breakdown shows a clear split in momentum: revenue from domestic transactions rose 1.2% year-on-year to over ₹1.22 trillion, while GST revenues from imported goods jumped 19.7% to ₹51,977 crore. The import surge helped lift the overall gross number even as the post-rate-cut environment kept domestic growth relatively subdued.

Refunds rise; net revenues show modest growth

Refunds were higher in December, rising 31% to ₹28,980 crore. After adjusting for refunds, net GST revenues stood at over ₹1.45 lakh crore, up 2.2% year-on-year, indicating moderate net growth despite the higher gross inflow.

The December numbers are being watched closely because they reflect early revenue patterns after the sweeping rate cuts. While rate reductions can compress per-unit collections, the expectation is that lower prices may support higher consumption over time, gradually broadening the base and stabilising revenues.

Why the import component matters

Import-related GST is sensitive to both global trade volumes and the mix of imported goods. A strong month on the import side can cushion weaker domestic growth, but it also highlights that the domestic rebound may take longer if consumers and businesses adjust gradually to the new pricing structure.

Going forward, policymakers and markets are likely to track whether domestic transaction growth accelerates in subsequent months, particularly as the economy heads into the final stretch of the financial year and consumption trends become clearer.