The gross goods and services tax (GST) collections, including cess, came in at Rs 1.79 lakh crore in December 2025 (November transactions), recording a year-on-year growth of 1.3%, reflecting a gradual normalisation of GST revenues after taxes were cut on about 375 items on September 22.
The gross GST revenues fell around 4% in November (October sales), absorbing the first full month impact of GST cuts and lowering of effective tax incidence, including cess on luxury automobiles.
Exclusive of the proceeds of the compensation cess, which partly collapsed into a 40% special rate for demerit goods, December GST revenues were up 6.1% on year on a year-on-year basis to Rs 1.75 lakh crore. The corresponding growth was 0.7% on-year in November 2025.
Import Strength vs. Domestic Normalisation
Pertinently, tax collections from the domestic market rose only 1.2% in December, while revenue from imports through the integrated GST (IGST) rose 19.7% on year. GST refunds rose 30.9% on year to Rs 28,980 crore in December 2025. Net GST collections (excluding cess) rose 2.2% on year to Rs 1.46 lakh crore in December.
“The GST council’s policies have clearly translated into higher compliance and improved cash flows across sectors. These trends indicate that even post the GST 2.0 path breaking tax rate reductions, the tax system continues to mature, demonstrating both elasticity and stability as the economy scales,” Mahesh Jaising, Partner & Indirect Tax Leader, Deloitte India said.
Saurabh Agarwal, Tax Partner, EY India: ”The robust performance in regions like the Northeast and Odisha highlights a deepening of consumption and increased development in these regions.”
While weather patterns suggest a muted outlook for the immediate month, the underlying trajectory remains focused on resilient, inclusive growth, Agarwal said.
Road to January 2026
Compensation cess is continuing only as a transitory arrangement till the entire loan and interest liability are discharged by January 31, 2026.
GST rates on about 375 items were slashed with effect from September 22, making goods cheaper. The government had rationalised GST tax rates to just two rates of 5% and 18%, from 5%, 12%, 18% and 28% previously.
A separate 40% rate has been fixed on ultra-luxury and demerit goods. Also, the compensation cess is levied only on tobacco and related products against luxury, sin and demerit goods earlier.