<h1>GST rate cuts on 375 goods and narrower compensation cess base hit collections; December 2025 net GST still strong</h1> Effective 22 September 2025, GST rates on about 375 items were reduced. This lowers the applicable output tax on those goods, making them cheaper and contributing to slower growth in GST collections from domestic transactions. The compensation cess levy was also narrowed to apply only to tobacco and related products instead of a wider set of luxury, sin and demerit goods. This restricts the cess tax base and is reflected in a lower cess collection in December 2025 compared with December 2024; overall gross GST collections in December 2025 were reported at over Rs 1.74 lakh crore, with higher refunds resulting in net GST revenues of over Rs 1.45 lakh crore.