GST: In December, India’s revenue jumped 6.1% to surpass Rs 1.74 lakh crore
GST: According to official numbers issued on Thursday, India’s GST (goods and services tax) collection increased 6.1% to Rs 1,74,550 crore in December 2025 from Rs 1,64,556 crore in the same month the year before, showing the month’s increased economic activity.
State and central GST revenues increased to Rs 41,368 crore, Rs 34,289 crore, and Rs 98,894 crore, respectively.
The GST compensation cess, which the government generated Rs 4,551 crore via, is only in place temporarily till the whole loan and interest debt is paid off. Compared to Rs 1.1 lakh crore in 2024, the whole year’s collection was Rs 88,385 crore.
The cess on tobacco and pan masala is still in place, despite new higher GST slabs, such as 40% for luxury goods.
December’s total GST refund was Rs 28,980 crore, up from Rs 22,138 crore in the same month last year.
Despite the tax rate drop that went into effect on September 22, the GST collection has increased since consumers’ demand for goods and services has increased, which has boosted economic activity.
The new tobacco product tax system will go into effect on February 1, 2026, according to a series of notifications released by the Finance Ministry on Thursday.
The Central Excise (Amendment) Act, 2025, which was enacted at the just-ended Winter session of Parliament, was informed that it will take effect on February 1, 2026. This Act establishes new tobacco product excise tax rates. Additionally, it announced that the Health Security Se National Security Act, 2025’s provisions, which now impose a cess on the production of pan masala, would take effect on February 1, 2026.
The ministry also published a list of frequently asked questions to clarify that the excise duty on cigarettes under the Goods and Services Tax regime has been kept at a nominal amount of a “fraction of a paisa” per cigarette stick up to this point, and that the GST compensation cess rate on tobacco products has not been raised since it was put into effect in July 2017.