Despite the significant reduction in GST rates, experts in the industry expressed optimism about the over 6 percent growth in gross monthly collections reported in December.
India’s GST collection experienced a growth of 6.1 percent, reaching Rs 1,74,550 crore in December 2025, compared to Rs 1,64,556 crore in December of the previous year, highlighting increased economic activity during that month.
Pratik Jain, a partner at Price Waterhouse & Co LLP, stated, “If this trend continues for the upcoming months of this fiscal year, a year-on-year growth of approximately 9 percent remains attainable, which likely aligns with the government’s goals.”
In December, collections from Central GST climbed to Rs 34,289 crore, while state GST collections amounted to Rs 41,368 crore, and integrated GST collections reached Rs 98,894 crore.
Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat, noted that the GST figures for December reinforce the structural strength of India’s formal economy, sending a positive signal as India cements its status as the world’s fourth-largest economy, overtaking Japan.
He pointed out that the composition of collections is significant, with a 19.7 percent rise in import-related IGST indicating robust supply chains and manufacturing activity, while consistent domestic collections suggest stable consumer spending.
The most notable figure remains the refunds, which amounted to Rs 28,980 crore, reflecting a 30.9 percent year-on-year increase and highlighting the system’s increasing focus on business liquidity, even though export refunds experienced a slight decline of 1.9 percent due to a softening global trade environment.
Maharashtra, Gujarat, Karnataka, and Haryana continue to play a vital role in supporting revenue generation.
The government collected Rs 4,551 crore through the GST compensation cess, which is still being implemented as a temporary measure until the complete loan and interest obligations are resolved. The total collection for the year was Rs 88,385 crore, compared to Rs 1.1 lakh crore in 2024.
Mishra added, “As the Budget for 2026-27 approaches, these trends bolster the argument for a policy focus on enhancing the GST 2.0 reforms, concentrating on the full automation of compliance processes, minimizing unnecessary litigation, and establishing a calibrated credit framework to maintain growth without compromising revenue stability.”