In March, GST Collection Increased 9.9% Year Over Year to INR 1.96 Lakh Cr

The amount collected from the Goods and Services Tax (GST) in March 2025 has increased to INR 1.96 lakh crore, marking a noteworthy milestone. This represents a remarkable 9.9% growth from the previous year. Hence, this growth highlights the nation's growing economic activity. The increase in collections indicates a strong consumer and business consumption pattern and is a good sign of the state of the economy. This amount is much more than the INR 1.62 trillion collected the previous month, which already showed an 8.1% year-over-year increase. Breaking down the components of the GST, the central GST collections amounted to INR 38,100 crore, while the state GST collections stood at INR  49,900 crore.

The integrated GST, which includes taxes on the inter-state supply of goods and services, reached INR 95,900 crore. Additionally, the GST cess, which is levied on the supply of certain goods and services to compensate for revenue loss to states, came in at INR 12,300 crore. These figures showcase the widespread participation in the GST system by both consumers and enterprises, reflecting the system's maturity and its role as a stable revenue source for the government.

Gujarat Leads the Race

In comparison to the 9.1% growth observed during the April to December period, the cumulative rise in GST collections from April 2024 to March 2025 was 9.4% year over year, indicating a modest increase. Several states and union territories have shown notable growth rates throughout this time. In FY 2024-25, for example, Gujarat's GST earnings increased by 14% over the previous fiscal year to INR 73,281 crore. This growth is significantly higher than the growth rate for the country as a whole. This performance demonstrates how Gujarat's effective tax-collecting systems contribute significantly to the national GDP.  The double-digit surge in GST collections in a number of states and union territories illustrates the regional diversity of economic activity. Significant year-over-year growth was observed in Tripura, Bihar, Sikkim, Meghalaya, and the Andaman and Nicobar Islands, with respective growth rates of 32%, 30%, 30%, 26%, and 60%.

 Various numbers demonstrate the increasing investments and economic activity in various sectors, which enhances overall GST collection. However, there were reductions in areas like Jammu and Kashmir, Himachal Pradesh, Manipur, Dadra and Nagar Haveli, and Daman and Diu. This downfall clearly suggests difficulties that might have been brought on by regional economic circumstances or administrative obstacles.

Growth of Domestic Refunds

Improvements in the tax administration system are demonstrated by the 2.8% increase in domestic refunds. This was followed by a significant 41.2% increase in total refunds, which included an astounding 201.9% year-over-year boost from imports. Refund processing efficiency may promote greater adherence to and involvement in the GST structure. The government is making constant efforts to simplify tax administration and enable more seamless commercial transactions. This vision was clearly reflected in the overall refund rise from April to March in FY25, which was 16.4% year over year and totalled INR 2.52 trillion. These changes point to a consistent course for improving India's tax system's effectiveness, which will benefit both the government and taxpayers.