With the second-highest monthly collections, gross GST revenue grew by 9.9% in March, reaching over ₹1.96 lakh crore. According to the finance ministry, GST revenue from domestic transactions rose by 8.8% to ₹1.49 lakh crore, while revenue from imported goods increased by 13.56% to ₹46,919 crore.The gross collection comprised ₹38,145 crore from Central GST, ₹49,891 crore from State GST, and ₹95,853 crore from Integrated GST (IGST). Cess collection for March stood at ₹12,253 crore. Total refunds during the month rose by 41% to ₹19,615 crore.
After adjusting for refunds, net GST revenue for March 2025 stood at over ₹1.76 lakh crore, reflecting a 7.3% growth compared to the same period last year.
Although collections were lower than the highest-ever GST revenue of ₹2.10 lakh crore recorded in April 2024, the figures indicate a slowdown in consumption. However, experts note that the growth in collections suggests an uptick in economic activity in select states.
YearTotal (Cr)ChangeFY18 (9 mths)792,389FY191,177,387FY201,222,0873.80%FY211,136,755-6.98%FY221,489,90531.07%FY231,806,04721.22%FY242,018,24911.75%FY252,208,8619.44%
Pratik Jain, Partner at PwC India, stated, “Single-digit growth in GST revenue for the month would be a bit of a concern for the government, though partly it seems to be due to higher refunds compared to last year. One can expect more rigour in GST audits and scrutiny to plug leakages. The slowdown in consumption is an area that also needs to be addressed.”M.S. Mani, Partner at Deloitte India, observed, “The 9.9% increase in gross GST collections for the month reflects the impact of the year-end sales push by businesses. It’s very encouraging to see that this is not an isolated instance, as GST collections have shown a steady increase every month, reflected by the 9.4% annual growth in gross GST collections. The increased refunds on both GST and Customs, which are very positive for businesses, have resulted in a lower net growth rate of 8.6% on an annual basis. While annual GST collections have shown an upward trajectory exceeding 10% on a net basis, the corresponding increase in Customs is only 3.5%. This could reflect the success of various import substitution measures, the Atma Nirbhar Bharat initiative, and some PLI schemes.“There continues to be a wide variation in GST collection growth across key manufacturing and consuming states. While states like Maharashtra, Haryana, Uttar Pradesh, and Rajasthan have reported growth exceeding 10%, others such as Gujarat, Karnataka, Telangana, Andhra Pradesh, and Tamil Nadu have recorded growth in the range of -1% to 7%, which is unusual for March. It is essential to analyse the reasons behind this by evaluating sectoral growth and compliance rates in these states.”Similarly, Abhishek Jain, Indirect Tax Head & Partner at KPMG, commented, “A nearly 10% growth in collections compared to last year reflects economic stability and strong tax compliance by companies. With fiscal year-end adjustments and reconciliations underway, we can expect a further surge in month-on-month growth in the next set of collections.”The numbers also highlight trends in imports and exports. Addressing this, Saurabh Agarwal, Tax Partner at EY, said, “India’s sustained growth in GST collections suggests a resilient domestic economy, seemingly insulated from global economic challenges, driven by strong consumer spending. However, a 13.5% increase in import GST compared to March 2024 highlights a significant rise in imports over the same period last year. Additionally, it is noteworthy that export refunds surged by 25.7% year-on-year, indicating positive results from government manufacturing initiatives. Notably, widespread GST collection growth across states such as Bihar, Tripura, Meghalaya, Chhattisgarh, Goa, Lakshadweep, and the Andaman & Nicobar Islands signifies balanced economic expansion across the nation.”Commenting on the impact on exporters, Vivek Jalan, Partner at Tax Connect Advisory Services LLP, noted, “Amidst geopolitical tensions, it is heartening to see the government supporting exporters. In March 2025, export GST refunds grew by 202%, indicating a clear shift in policy towards expediting export refunds. Typically, refunds are slow in March, but this time, it appears an exception has been made to assist exporters, who are already facing uncertainty due to the Trump 2.0 regime.”Neha Shrivastava, Associate Partner, Indirect Tax, Forvis Mazars in India added, “The increase in the GST collection shows compliance and learning in the industry from the first phase of litigation of FY 17-18. Various concepts such as common cost allocation and valuation on related party transactions have achieved more clarity and hence are reflecting on the compliances eventually.”
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