GST collections pick up pace in December rise to US$ 20.9 billion
- IBEF
- January 2, 2026
There has been a further strengthening of India’s Goods and Services Tax (GST) collection as tax compliance improves and continued economic momentum is sustained. The gross GST revenue collected in December 2020 is reported at Rs 1.74 lakh crore (US$ 20.9 billion). It has increased by 6.1% year-on-year (YoY), with the fastest rate of growth recorded over the previous twelve months. This growth results from the benefits of digital tracking implementation, rationalised rate structures, and the increased implementation of recent policy updates. The increase in indirect tax revenue demonstrates resilience across the manufacturing, service, logistics, and trade value chains, indicating continued progress in formalising the Indian Economy. After accounting for refund remittances, net GST collections amounted to Rs 1.46 lakh crore (US$ 17.5 billion), which continues to reflect positive fiscal strength and support government investment priorities.
Additionally, the prevailing settlement trends for GST indicate that Maharashtra, Gujarat, Karnataka, and Tamil Nadu contribute the highest volume of business to the overall GST pool. This reflects the fact that these states will continue to play a pivotal role in driving the national economy's expansion. The increase in collection types due to import-linked activity and improved reporting discipline was also indicative of the administration's success in collecting GST revenues. Even though all indicators of economic activity are stable, the GST revenue continues to serve as an indicator of total nationwide consumption and business transactions.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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