New Delhi, April 1 GST revenues grew by about 9% in March, reaching the pre-tax cut level of over Rs 2 lakh crore, the third highest monthly collection in the 2025-26 fiscal, driven by revenue from both imports and domestic sales and purchases, according to government data released on Wednesday.
Gross domestic revenues rose by 5.9% to over Rs 1.46 lakh crore, while revenues from imports increased by 17.8% to Rs 53,861 crore during the month.
The gross Goods and Services Tax (GST) collection in March 2025 was Rs 1.83 lakh crore.
March 2026 saw the third-highest collection in the 2025-26 fiscal (April-March), with April 2025 recording the highest-ever GST revenues at over Rs 2.36 lakh crore, followed by May's collection at over Rs 2.01 lakh crore.
For the entire 2025-26 fiscal, GST collections grew by 8.3% year-on-year to over Rs 22.27 lakh crore.
GST rates on about 375 items were reduced, making goods cheaper, effective September 2025. Additionally, the four tax slabs of 5%, 12%, 18%, and 28% were merged into two: 5% and 18%. The highest 40% slab was reserved for a select few ultra-luxury goods and tobacco products.
GST collections initially dipped in the first month after the tax cut was implemented, falling to Rs 1.70 lakh crore in November. They then increased to Rs 1.74 lakh crore in December and further to Rs 1.93 lakh crore in January. In February, they were over Rs 1.83 lakh crore.
Refund issuance in March increased by 13.8% to Rs 22,074 crore, according to the latest data.
After accounting for refunds, net GST revenues in March stood at about Rs 1.78 lakh crore, a 8.2% increase year-on-year.
Deloitte India Partner M S Mani said that while these collections indicate that consumer sentiment remains strong, it is interesting to see that the 8% plus growth in gross GST collections has been significantly driven by the very strong collections in import GST numbers.
"There has been a significant increase in imports, which has contributed to GST collections on imports. This would also have led to a significant increase in customs duty collections," Mani said.
While large states such as Maharashtra, Karnataka, and Telangana continue to show robust growth in collections, states such as Haryana, Andhra Pradesh, and Madhya Pradesh demonstrate slower growth.
EY India Tax Partner Saurabh Agarwal said, "Looking ahead in April, we anticipate a cautious trajectory. Geopolitical headwinds and global inflationary pressures are likely to compress consumption demand."
While traditional year-end sales may provide a tactical buffer, the mid-term outlook necessitates continued policy intervention to sustain manufacturing momentum against global volatility, Agarwal said.
Tax Connect Advisory Services, Partner, Vivek Jalan said, "Overall, GST collections not only reinforce fiscal stability but also validate the broader macroeconomic narrative that India's tax system is keeping pace with GDP expansion, providing governments and businesses alike with confidence in the sustainability of growth."