GST Collections Increase 9.9% YoY to Rs 1.96 Lakh Crore in March; Gujarat Sees 14% Growth

Goods and Services Tax (GST) collections in March 2025 rose significantly, reaching Rs 1.96 lakh crore—a notable 9.9% year-on-year increase. This growth underscores a continuing uptick in economic activities and consumer confidence across India.

Breaking down the figures, central GST collections amounted to Rs 38,100 crore, while state GST collections reached Rs 49,900 crore. Integrated GST, applicable on inter-state transactions, stood at Rs 95,900 crore, and GST cess, levied to compensate states for revenue losses, was recorded at Rs 12,300 crore.

Compared to the previous month’s collections of Rs 1.62 lakh crore, the March figures indicate a strong and sustained economic momentum. The cumulative GST collections from April 2024 to March 2025 grew by 9.4% year-on-year, reflecting stable economic growth and effective tax compliance measures.

Regionally, Gujarat led major states with an impressive 14% growth, collecting Rs 73,281 crore in GST during FY 2024-25, significantly above the national average. Other regions also posted remarkable growth figures, with Tripura (32%), Bihar (30%), Sikkim (30%), Meghalaya (26%), and the Andaman and Nicobar Islands (60%) demonstrating substantial economic development. In contrast, Jammu and Kashmir, Himachal Pradesh, Manipur, and Dadra and Nagar Haveli and Daman and Diu faced reductions, signaling local economic or administrative challenges.

Improvements in tax administration were evident in the refund processing, with domestic refunds growing by 2.8% and total refunds surging by 41.2%, including a remarkable 201.9% growth from import refunds. The total refund amount from April to March in FY25 was Rs 2.52 trillion, marking a 16.4% increase year-on-year. This efficiency highlights governmental efforts to streamline the taxation process and promote higher compliance, beneficial for businesses and the broader economy alike.