By:-Karthik Mani, Partner, Indirect tax at BDO India
“The net GST Collections for December, 2025 showed a drop of ~4.3% on a month on month basis, largely due to a significant increase in refunds issued as well as a slight drop in gross GST collections on domestic transactions. While the GST collections on imports have shown an uptick in December 2025, it was not sufficient to cover the shortfall in domestic collections due to increased refunds and reduced gross GST collections. However, the gross GST collections on domestic transactions for December 2025 have largely remained flat on year on year basis, despite impact on revenue in current period due to major rate cuts in September 2025, indicating some improvement in the economic activity on a year on year basis. Next few months should give a decent indication of new normal monthly GST collections, after adjusting for rate cuts.“