GST collections rise 6.1% to over ₹1.74 trillion in December 2025; import revenues jump while refunds surge
India’s gross GST collections rose 6.1% year-on-year to over ₹1.74 trillion in December 2025, driven by a sharp rise in revenue from imports even as domestic transaction growth stayed muted. Government data also showed refunds jumped 31%, bringing net GST revenue (after refunds) to over ₹1.45 trillion, up 2.2% year-on-year—an early indicator of how recent tax changes are influencing collections.
The headline numbers: higher gross GST, modest net growth
Gross Goods and Services Tax (GST) collections increased 6.1% year-on-year to over ₹1.74 trillion in December 2025, according to government data reported this month. After adjusting for refunds, net GST revenue stood at over ₹1.45 trillion—up 2.2% compared to the same period a year earlier.
The data points to a collections picture shaped by two competing forces: stronger import-linked revenues on one side, and refund outgo plus relatively slower domestic revenue growth on the other.
Imports drive the acceleration
A key contributor to the rise was a strong jump in GST revenue from imported goods, which climbed 19.7% year-on-year to ₹51,977 crore in December 2025. By contrast, GST from domestic transactions rose only 1.2% to over ₹1.22 trillion, indicating that local consumption-linked GST growth remained comparatively soft.
This divergence matters for policymakers because it can signal differences between trade-related inflows and domestic demand conditions, as well as compliance trends across sectors.
Refunds surge, shaping net collections
Refunds rose 31% to ₹28,980 crore during the month, which reduced the net growth rate despite higher gross collections. For businesses—especially exporters and firms with inverted duty structures—refund efficiency is crucial for working capital, but it can make net revenue growth appear weaker in months when refunds spike.
The data also arrives in the context of a revamped GST structure and rate rationalisation that aimed to reduce burdens across a range of items. The medium-term question is whether rate changes translate into higher compliance and broader consumption, offsetting any near-term revenue pressure.
- Gross GST collections: +6.1% YoY to over ₹1.74 trillion (December 2025)
- Net GST (after refunds): over ₹1.45 trillion, +2.2% YoY
- Domestic GST growth: +1.2% YoY to over ₹1.22 trillion
- Import GST growth: +19.7% YoY to ₹51,977 crore
- Refunds: +31% to ₹28,980 crore