In March 2025, India witnessed an impressive surge in Goods and Services Tax (GST) revenue, marking a notable 9.9% increase compared to the previous year. The total gross collection reached over ₹1.96 lakh crore, making it the second-highest mop-up recorded to date, according to recent government statistics. This growth reflects robust economic activity and strategic year-end sales by businesses across various sectors.
Breakdown of GST Revenue
The revenue generated from domestic transactions contributed significantly to this growth, rising by 8.8% to ₹1.49 lakh crore. In addition, revenues from imported goods also saw a healthy increase of 13.56%, totaling ₹46,919 crore. The comprehensive gross collection includes:
- Central GST: ₹38,145 crore
- State GST: ₹49,891 crore
- Integrated GST (IGST): ₹95,853 crore
- Cess: ₹12,253 crore
Furthermore, the total refunds processed in March escalated by 41%, amounting to ₹19,615 crore. After factoring in these refunds, the net GST revenue stood at over ₹1.76 lakh crore, signifying a 7.3% increase year-over-year.
Historical Context and Future Predictions
Notably, the record high for GST collections was achieved in April 2024, when revenues peaked at ₹2.10 lakh crore. MS Mani, a partner at Deloitte India, pointed out that the year-end sales efforts by businesses have played a crucial role in driving this month’s impressive figures. He emphasized that the steady monthly growth trend, as evidenced by the 9.4% annual increase in gross GST collections, is a positive sign for the economy.
The overall gross GST collection for the fiscal year ending in March stood at an impressive ₹22.08 lakh crore, reflecting a 9.4% year-on-year growth. However, Mani noted a concerning disparity in growth rates across different states. Some states, such as Maharashtra, Haryana, Uttar Pradesh, and Rajasthan, reported growth rates exceeding 10%, while others like Gujarat, Karnataka, and Tamil Nadu experienced much slower growth, ranging from -1% to 7%.
Insights from Industry Experts
Abhishek Jain, a partner and head of indirect tax at KPMG in India, shared that the nearly 10% growth in collections signifies both economic stability and enhanced tax compliance among businesses. He anticipates that as fiscal year-end adjustments and reconciliations continue, a further increase in month-on-month growth is likely in the coming months.
In conclusion, the March GST collections underscore the resilience of India’s economy and the effectiveness of tax compliance strategies among companies. Stakeholders are keenly observing the trends in state-specific growth rates and the underlying factors contributing to these variations. For more insights on economic forecasts and GST regulations, consider reading our articles on GST Updates and Economic Trends in India.
