India's GST revenue rose 6.1% in Dec 2025, driven by imports and tax reforms, despite slow domestic growth.

Due to a 19.7% increase in import-related revenue, India's gross GST collections increased 6.1% year over year to ₹1.74 lakh crore in December 2025, while domestic collections only increased 1.2%. Due in large part to tax cuts under the GST 2.0 reform, which simplified rates to 5% and 18% with a 40% rate for luxury goods, refunds increased 31% to ₹28,980 crore as of September 22, 2025. Annual GST collections for April–December 2025 increased 8.6% to ₹16.5 lakh crore despite higher refunds and a significant decline in cess collections, indicating continued economic activity and better compliance.