India’s goods and services tax (GST) collections showed a modest recovery in December 2025, signalling early stabilisation after recent tax rationalisation and improved demand conditions.
Gross GST revenue rose 6.1% year-on-year to over ₹1.74 lakh crore, up from ₹1.64 lakh crore a year earlier and ₹1.70 lakh crore in November, government data released on Thursday showed.
The uptick comes after a softer November, when the combined impact of GST rate cuts announced in September and broader policy easing, including earlier interest rate cuts by the Reserve Bank of India, weighed on indirect tax collections.
Local GST revenue edged up just 1.2% to ₹1.22 lakh crore, reflecting lingering pressure on domestic consumption.
However, GST from imports surged 19.7% to ₹51,977 crore, pointing to stronger trade activity.
Despite a sharp 31% rise in refunds, net GST revenue still grew 2.2% to ₹1.45 lakh crore, indicating gradual momentum returning to the tax base.
