GST Collections Rise 9% in March, Signalling Resilient Economic Activity

Goods and Services Tax (GST) revenues for March 2026 crossed ₹2 lakh crore , up 9% year-on-year , marking the third-highest monthly collection in FY26. The steady growth in collections indicates resilient economic activity and improved compliance , reflecting strong domestic demand and robust trade.

Gross domestic GST contributions rose 5.9% to ₹1.46 lakh crore, while revenues from imports surged 17.8% to ₹53,861 crore , highlighting the significant role of imports in driving higher revenue growth . The cumulative GST collections for the full 2025-26 fiscal reached over ₹22.27 lakh crore , up 8.3% YoY , demonstrating consistent year-on-year revenue expansion and a stable fiscal position .

GST refunds issued in March rose 13.8% to ₹22,074 crore , reflecting active trade and ongoing tax adjustments . After accounting for refunds, net GST revenue stood at ₹1.78 lakh crore , up 8.2% YoY , further reinforcing India’s fiscal stability .

Experts noted that while domestic consumption continues to support collections, strong import GST numbers have been a major driver. M S Mani , Partner at Deloitte India, said that rising imports have also contributed to higher customs duty collections , boosting overall government revenues. Saurabh Agarwal , Tax Partner at EY India, cautioned that global inflationary pressures and geopolitical headwinds could moderate growth in April, emphasising the need for policy support to sustain manufacturing momentum.

State-wise, Maharashtra, Karnataka, and Telangana continued to show robust GST growth , while Haryana, Andhra Pradesh, and Madhya Pradesh reported slower increases, indicating varied regional economic activity.

The March figures follow GST rate reforms implemented in September 2025, where rates on about 375 items were cut and four slabs merged into two (5% and 18%) , with the highest 40% slab retained for ultra-luxury goods and tobacco products . Despite an initial dip in collections immediately after the tax cuts, revenues steadily recovered from ₹1.70 lakh crore in November 2025 to ₹1.93 lakh crore in January 2026 , highlighting the resilience of India’s tax system .

Overall, the strong GST mop-up , buoyed by domestic consumption, imports, and active trade adjustments, not only underscores India’s economic resilience but also provides confidence in the sustainability of government revenues and broader GDP growth .