India’s GST collection for December 2025 increased by 6.1% to Rs 1,74,550 crore compared to Rs 1,64,556 crore in the same month the previous year. This rise reflects the growth in economic activity during the month. Central GST collections reached Rs 34,289 crore, state GST collections stood at Rs 41,368 crore, and integrated GST collections amounted to Rs 98,894 crore.
The government collected Rs 4,551 crore through the GST compensation cess, which is a temporary measure until the full loan and interest liability are settled. The total collection for the year was Rs 88,385 crore, down from Rs 1.1 lakh crore in 2024. New higher GST slabs, such as 40% for luxury items, have been introduced, while the cess remains on tobacco and pan masala.
In December, total GST refunds reached Rs 28,980 crore, a significant increase from Rs 22,138 crore in the same month the previous year. Despite the tax rate cuts implemented on September 22, GST collection has grown due to heightened consumer demand for goods and services, boosting economic activity.
The Finance Ministry announced new tax regulations for tobacco products effective from February 1, 2026. The Central Excise (Amendment) Act, 2025, passed in the recent Winter session of Parliament, will come into force on the same date, specifying new excise duty rates on tobacco products. Additionally, the Health Security Se National Security Act, 2025, which imposes a cess on pan masala manufacturing, will also be enforced from February 1, 2026.
The ministry clarified through an FAQ list that under the GST regime, the excise duty on cigarettes had been minimal, while the GST compensation cess rate on tobacco products has remained unchanged since its introduction in July 2017.
