Representative image

The gross Goods and Services Tax collections for December 2025 were at Rs 1.75 lakh crore, marking a 6.1 per cent increase from the previous year. The April-December period of 2025-26 saw massive growth in GST collections, with total collections reaching Rs 16.5 lakh crore, up 8.6 per cent from Rs 15.2 lakh crore in the same period last year.

Both central and state components showed positive growth during this time.The fiscal year 2024-25 also proved to be a landmark year for GST, with collections hitting a record Rs 22.08 lakh crore, showing a 9.4 per cent jump from its previous year. The average monthly collection reached its highest level since GST's 2017 launch, standing at Rs 1.84 lakh crore.Talking about the latest figures, Saurabh Agarwal, Tax partner at EY India, said, "In a landscape shaped by structural transitions, we are observing a period of deliberate calibration in revenue.

The current moderation in domestic GST collections growth aligns with expectations following the government’s GST rate rationalization—a move prioritizing long-term tax harmony over immediate gains. However, the uptick in GST collections on imports warrants a closer look, as it is not in alignment with the Atmanirbhar Bharat vision of self-reliance.

Conversely, the rise in domestic GST refunds is a welcome signal of the government’s commitment to easing working capital for businesses, despite the complexities of inverted duty structures and muted growth in GST collections."

"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," he added.This growth comes after the system moved from four tax slabs to two main rates of 5 per cent and 18 per cent, with a special 40 per cent rate for luxury goods.The recent reforms announced by Prime Minister Modi from the Red Fort on Independence Day and implemented from the first day of Navratri represent the most significant overhaul of the system. These changes aim to reduce the tax burden on citizens while promoting economic growth through a simpler tax structure. Meanwhile, since its formation in 2016, the Council has held 55 meetings and taken several key decisions aimed at simplifying the GST framework and making it more business-friendly.