Daijiworld Media Network - New Delhi
New Delhi, Jan 1: India’s Goods and Services Tax (GST) collections in December 2025 recorded a 6.1% rise to Rs 1,74,550 crore, up from Rs 1,64,556 crore in December 2024, reflecting heightened economic activity during the month, official data released on Thursday showed.
Breaking down the figures, Central GST (CGST) collections stood at Rs 34,289 crore, State GST (SGST) at Rs 41,368 crore, and Integrated GST (IGST) at Rs 98,894 crore. In addition, the government raised Rs 4,551 crore through the GST compensation cess, which continues as a transitional measure until all related loan and interest liabilities are cleared. For the full fiscal year, cess collections reached Rs 88,385 crore, compared with Rs 1.1 lac crore in 2024.
The increase comes despite the introduction of lower GST rates in September 2025, which helped stimulate demand for goods and services, boosting overall economic activity. Refunds under GST also rose, totaling Rs 28,980 crore in December compared to Rs 22,138 crore in the same month last year.
Luxury items continue to attract higher GST slabs of up to 40%, while the compensation cess remains on tobacco products and pan masala.
In a related development, the Finance Ministry issued notifications on Thursday detailing the new tax regime for tobacco products, which will come into effect from February 1, 2026. The Central Excise (Amendment) Act, 2025, passed during the recent Winter session of Parliament, will set revised excise duty rates on tobacco items. Similarly, the Health Security Se National Security Act, 2025, which currently imposes a cess on pan masala production, will also be enforced from the same date.
The ministry clarified through a FAQ document that under the GST framework, excise duty on cigarettes had previously been almost negligible—“a fraction of a paisa per stick”—and that the GST compensation cess on tobacco products had not been increased since its introduction in July 2017.
The rise in GST collections, alongside the upcoming changes to tobacco taxation, underscores the government’s ongoing efforts to strengthen revenue mobilisation while adapting tax policies to evolving economic and public health priorities.