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Comprehensive GST Collection Analysis: December 2025 Shows Robust Growth Amid State-Level Variations
A Complete Breakdown of Gross & Net Collections, Refunds, Cess Trends, and State-wise Revenue Distribution
The Goods and Services Tax (GST) collection figures for December 2025 reveal a nuanced picture of India’s tax revenue landscape. While overall collections show steady growth, significant variations emerge across components and states. This comprehensive analysis delves into every aspect of the provisional data, providing finance professionals, policymakers, and business leaders with actionable insights into economic trends and fiscal health.
Executive Summary: Key Findings at a Glance
Driven by 19.7% import GST growth
Healthy growth after refunds
62.0% surge in domestic refunds
IGST settlement boosts state revenues
National GST Collection Trends
Interpretation: Diverging Growth Patterns
The 6.1% overall monthly growth masks significant divergence between domestic and import GST. While domestic collections grew modestly at 1.2%, import GST surged by 19.7% to ₹51,977 crore. This suggests strong import activity potentially driven by domestic demand or stockpiling ahead of expected policy changes. The IGST component (which includes both domestic and import IGST) grew by 8.4% to ₹98,894 crore, indicating robust inter-state trade.
| Component | Dec-24 | Dec-25 | Monthly Growth | Apr-Dec 2024-25 | Apr-Dec 2025-26 | YTD Growth |
|---|---|---|---|---|---|---|
| A.1. Domestic Revenue | 1,21,118 | 1,22,574 | 1.2% | 11,32,100 | 12,08,663 | 6.8% |
| CGST | 32,836 | 34,289 | 4.4% | 3,04,350 | 3,27,496 | 7.6% |
| SGST | 40,499 | 41,368 | 2.1% | 3,77,911 | 4,04,315 | 7.0% |
| IGST (Domestic) | 47,783 | 46,917 | -1.8% | 4,49,839 | 4,76,852 | 6.0% |
| A.2. Import Revenue | 43,438 | 51,977 | 19.7% | 3,87,697 | 4,41,376 | 13.8% |
| IGST (Import) | 43,438 | 51,977 | 19.7% | 3,87,697 | 4,41,376 | 13.8% |
| A.3. Gross GST Revenue | 1,64,556 | 1,74,550 | 6.1% | 15,19,797 | 16,50,039 | 8.6% |
| C.3. Net GST Revenue | 1,42,417 | 1,45,570 | 2.2% | 13,34,873 | 14,25,006 | 6.8% |
Key Insight: Import-Driven Growth
The standout feature of the December 2025 collections is the 19.7% surge in import GST, contributing significantly to overall growth. This could indicate several economic trends: increased capital goods imports for infrastructure projects, rising consumer demand for imported products, or inventory buildup. The domestic sector’s modest 1.2% growth suggests possible demand saturation or seasonal factors affecting consumption patterns. The healthy 8.6% cumulative growth for April-December indicates sustained economic activity despite monthly fluctuations.
Refund Analysis: Understanding the 30.9% Increase
Key Observation: The substantial 62% increase in domestic refunds suggests either improved processing efficiency by tax authorities or legitimate increase in input tax credit claims by businesses. The 81% surge in IGST refunds specifically indicates higher inter-state transactions where input tax credits are being claimed.
| Refund Category | Dec-24 | Dec-25 | Monthly Growth | Apr-Dec 2024-25 | Apr-Dec 2025-26 | YTD Growth |
|---|---|---|---|---|---|---|
| B.1. Domestic Refunds | 11,372 | 18,422 | 62.0% | 96,296 | 1,25,881 | 30.7% |
| CGST Refund | 2,906 | 4,274 | 47.1% | 24,649 | 29,376 | 19.2% |
| SGST Refund | 3,653 | 5,439 | 48.9% | 31,125 | 37,460 | 20.4% |
| IGST Refund | 4,813 | 8,709 | 81.0% | 40,522 | 59,044 | 45.7% |
| B.2. Export Refunds (ICEGATE) | 10,766 | 10,558 | -1.9% | 88,628 | 99,152 | 11.9% |
| B.3. Total Refunds | 22,138 | 28,980 | 30.9% | 1,84,924 | 2,25,033 | 21.7% |
Interpretation: Refund Trends Signal Business Health
The substantial 62% increase in domestic refunds suggests either improved processing efficiency by tax authorities or legitimate increase in input tax credit claims by businesses. The 81% surge in IGST refunds specifically indicates higher inter-state transactions where input tax credits are being claimed. Export refunds remaining stable (-1.9% change) suggests consistent export activity. While high refunds reduce net collections, they represent working capital being returned to businesses, potentially stimulating further economic activity.
State-wise GST Revenue Analysis
Key Observation: Maharashtra continues to dominate GST collections with ₹16,140 crore post-settlement SGST in December 2025, representing 20.3% of all state revenues. Industrialized states (Gujarat, Karnataka, Tamil Nadu) show strong performance, while some states like Jharkhand (-17%), Odisha (-12%), and Chhattisgarh (-28%) show significant monthly declines in post-settlement revenues despite pre-settlement growth.
| State/UT | Pre-Settlement SGST (Dec-24) | Pre-Settlement SGST (Dec-25) | Pre-Settlement Growth | Post-Settlement SGST (Dec-24) | Post-Settlement SGST (Dec-25) | Post-Settlement Growth |
|---|---|---|---|---|---|---|
| Maharashtra | 9,465 | 9,852 | 4.1% | 14,093 | 16,140 | 14.5% |
| Karnataka | 3,651 | 3,816 | 4.5% | 6,389 | 6,716 | 5.1% |
| Gujarat | 3,328 | 3,549 | 6.6% | 5,650 | 6,351 | 12.4% |
| Uttar Pradesh | 2,535 | 2,538 | 0.1% | 6,381 | 6,671 | 4.5% |
| Tamil Nadu | 3,707 | 3,598 | -2.9% | 5,556 | 5,992 | 7.8% |
| Haryana | 1,811 | 1,836 | 1.4% | 3,117 | 3,629 | 16.4% |
| West Bengal | 1,809 | 1,847 | 2.1% | 3,524 | 3,559 | 1.0% |
| Rajasthan | 1,419 | 1,441 | 1.6% | 3,427 | 3,455 | 0.8% |
| Telangana | 1,817 | 1,762 | -3.0% | 3,467 | 3,552 | 2.5% |
| Kerala | 1,184 | 1,236 | 4.4% | 2,549 | 2,643 | 3.7% |
| Delhi | 1,353 | 1,298 | -4.1% | 2,742 | 2,684 | -2.1% |
| Andhra Pradesh | 1,076 | 1,102 | 2.4% | 2,507 | 2,652 | 5.8% |
| Madhya Pradesh | 1,065 | 1,057 | -0.8% | 2,829 | 2,780 | -1.7% |
| Bihar | 768 | 717 | -6.6% | 2,197 | 2,435 | 10.8% |
| Odisha | 1,354 | 1,485 | 9.7% | 1,925 | 1,691 | -12.2% |
| Grand Total (All States) | 40,499 | 41,368 | 2.1% | 75,355 | 79,584 | 5.6% |
Cumulative State Performance (April-December 2025)
| State/UT | No. of GSTINs (Dec 2025) | CGST Collection | SGST Collection | IGST Collection | Total Collection | Year-on-Year Growth |
|---|---|---|---|---|---|---|
| Maharashtra | 11,32,913 | 43,228 | 49,188 | 52,039 | 1,44,454 | 8.3% |
| Karnataka | 6,46,964 | 16,020 | 19,422 | 22,885 | 58,327 | 11.7% |
| Tamil Nadu | 7,13,121 | 15,775 | 20,875 | 17,280 | 53,931 | 8.1% |
| Gujarat | 7,75,184 | 17,542 | 20,466 | 17,342 | 55,350 | 5.0% |
| Uttar Pradesh | 11,48,619 | 11,014 | 14,213 | 13,127 | 38,354 | 4.0% |
| Delhi | 5,28,391 | 7,038 | 8,117 | 21,777 | 36,932 | 6.8% |
| West Bengal | 4,87,881 | 9,479 | 11,052 | 7,523 | 28,054 | 7.5% |
| Rajasthan | 5,99,498 | 6,228 | 7,920 | 7,735 | 21,883 | 4.7% |
| Telangana | 3,20,510 | 7,019 | 8,922 | 7,732 | 23,673 | 5.7% |
| Andhra Pradesh | 2,54,446 | 4,453 | 5,655 | 4,862 | 14,970 | 1.5% |
| Haryana | 3,46,812 | 8,302 | 10,541 | 26,264 | 45,107 | 7.2% |
| Madhya Pradesh | 3,41,533 | 4,643 | 5,713 | 4,589 | 14,945 | 7.2% |
| Bihar | 3,70,837 | 2,491 | 4,492 | 1,061 | 8,044 | 12.5% |
| Kerala | 2,62,370 | 4,013 | 5,066 | 2,022 | 11,101 | 8.4% |
| Odisha | 2,06,222 | 5,422 | 7,498 | 4,959 | 17,879 | 2.6% |
| All India Total | 92,22,034 | 1,80,659 | 2,22,606 | 2,38,572 | 6,41,837 | 6.8% |
Compensation Cess Analysis
Critical Insight: Compensation Cess Wind-Down
The dramatic 64.7% decline in net cess revenue aligns with the official note that “compensation cess is continuing only as a transitory arrangement till entire loan and interest liability are discharged.” This represents a significant fiscal shift as this revenue stream phases out. The 98.2% drop in import cess suggests policy changes to exempt most imports from this levy, potentially to reduce import costs and stimulate certain sectors.
| Cess Component | Dec-24 | Dec-25 | Change | Apr-Dec 2024-25 | Apr-Dec 2025-26 | YTD Change |
|---|---|---|---|---|---|---|
| Domestic Cess | 11,471 | 4,536 | -60.5% | 1,05,305 | 87,538 | -16.8% |
| Import Cess | 830 | 15 | -98.2% | 8,465 | 5,923 | -30.0% |
| Cess Refund | (297) | (313) | 5.4% | (3,605) | (5,076) | 40.8% |
| Net Cess Revenue | 12,003 | 4,238 | -64.7% | 1,10,166 | 88,385 | -19.8% |
Conclusion: Key Takeaways for Economic Analysis
Final Assessment
GST system shows robustness with 8.6% cumulative growth despite global headwinds, indicating maturity and stability in tax administration.
Strong import GST growth (+19.7%) signals healthy domestic demand and potential inventory buildup for future economic activity.
High refund outflows (+30.9%) indicate efficient working capital return to businesses, supporting operational liquidity.
IGST settlement continues to significantly boost state revenues (+5.6%) despite cess phase-out, ensuring stable state finances.
The December 2025 GST data presents a picture of a tax system maturing, with import activity driving growth, efficient refund mechanisms supporting businesses, and the compensation cess successfully winding down as planned. State-level variations highlight regional economic divergences that warrant targeted policy attention. As India’s economy continues to expand, the GST regime appears well-positioned to capture this growth while maintaining fiscal stability.
