GST Collections Jump 6.1% in December 2025 Reached ₹1.75 Lakh Crore

India’s Goods and Services Tax (GST) revenues continued their upward trend in December, reflecting steady economic activity and improved tax compliance. According to official data released, GST collections grew over 6% compared to last year, adding strength to government finances. The sustained rise in GST receipts highlights the growing maturity of India’s indirect tax system and the impact of recent tax reforms aimed at simplifying rates and improving ease of doing business.

Why in the News?

Gross GST collections in December increased by 6.1% year-on-year to around ₹1.75 lakh crore. The latest data also shows strong growth in cumulative GST collections during April–December FY26, indicating stable revenue performance and better compliance under the GST regime.

What the December GST Numbers Show

  • Total GST collection in December stood at ₹1.75 lakh crore, up from about ₹1.64 lakh crore last year
  • CGST and SGST collections registered growth
  • IGST collections declined on a year-on-year basis for December
  • Overall trend remains positive despite month-wise variation in components

GST Performance in FY26 So Far

For the period April-December FY26,

  • Gross GST collections rose 8.6% year on year
  • Total collections reached about ₹16.5 lakh crore, compared to ₹15.2 lakh crore last year
  • All major components – CGST, SGST, and IGST – recorded growth during this period
  • This shows stable revenue mobilisation in the current financial year.

Record GST Collections in Recent Years

  • FY25 recorded the highest ever GST collection of ₹22.08 lakh crore, a growth of 9.4%
  • Average monthly GST collection in FY25 was ₹1.84 lakh crore, the highest since GST began in 2017
  • GST revenues increased steadily from ₹11.37 lakh crore (FY21) to ₹20.18 lakh crore (FY24)

Role of the GST Council

The GST Council, established under the Constitution in 2016, plays a key role in GST policy making.

  • Chaired by the Union Finance Minister
  • Includes State Finance Ministers and senior officials
  • Has held 56 meetings so far
  • Focuses on simplifying tax rates and improving compliance

Recent GST Reforms and Rate Rationalization

In September 2025, next-generation GST reforms were announced

GST structure was reduced from four slabs (5%, 12%, 18%, 28%) to,

  • 5% (merit rate)
  • 18% (standard rate)
  • 40% special rate for select luxury and sin goods
  • Aim: simplify GST, reduce disputes, and make the system more business friendly

Key Summary At Glance

Aspect Details
Why in News? GST collections rose 6.1% in December 2025
December GST Collection ₹1.75 lakh crore
April–December FY26 ₹16.5 lakh crore (8.6% growth)
Best Annual Collection ₹22.08 lakh crore in FY25
Average Monthly GST (FY25) ₹1.84 lakh crore

Question

Q. What was India’s gross GST collection in December?

A. ₹1.64 lakh crore
B. ₹1.75 lakh crore
C. ₹1.84 lakh crore
D. ₹2.08 lakh crore

Shivam

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