New Delhi, Jan 01: India’s Goods and Services Tax (GST) collection rose by 6.1% in December 2025, reaching Rs 1,74,550 crore, compared to Rs 1,64,556 crore in December 2024, signaling increased economic activity. Of this total, Central GST collections amounted to Rs 34,289 crore, State GST to Rs 41,368 crore, and Integrated GST to Rs 98,894 crore.
The government generated Rs 4,551 crore through GST compensation cess, which remains temporary until loan and interest obligations are cleared. Despite a cut in tax rates introduced on September 22, consumer demand for goods and services surged, further stimulating economic activity, contributing to a full-year collection of Rs 88,385 crore, a decline from Rs 1.1 lakh crore in 2024.
Additionally, total GST refunds in December were Rs 28,980 crore, compared to Rs 22,138 crore a year prior. The Finance Ministry plans to implement a new tax regime for tobacco products effective February 1, 2026, alongside the Central Excise (Amendment) Act, 2025, which will adjust excise duty rates. Furthermore, the cessation of the nominal excise duty on cigarettes and stable GST compensation cess rates for tobacco since July 2017 was highlighted in a released FAQ list.
