India’s Goods and Services Tax (GST) collections for March 2026 recorded a strong performance, with gross revenues crossing the ₹2 lakh crore mark, reflecting sustained economic momentum and improved compliance.
According to the latest provisional data, total gross GST revenue stood at ₹2,00,064 crore in March 2026, marking an 8.8% increase compared to ₹1,83,845 crore collected in March 2025. On a yearly basis, cumulative gross GST collections rose to ₹22,27,096 crore in 2025–26, registering an 8.3% growth over the previous fiscal.
Strong Domestic and Import Growth
The growth was driven by both domestic transactions and imports. Gross domestic revenue increased by 5.9% year-on-year to ₹1,46,202 crore in March 2026. Meanwhile, GST revenue from imports showed a sharper rise of 17.8%, reaching ₹53,861 crore, indicating robust import activity and consumption demand.
Among tax components, Integrated GST (IGST) collections saw a notable jump, rising to ₹1,06,246 crore during the month, reflecting increased inter-state trade and imports.
Refunds Surge, Net Collections Still Strong
Refunds also witnessed a significant increase. Total GST refunds during March 2026 stood at ₹22,074 crore, up 13.8% from ₹19,400 crore in March 2025. Domestic refunds alone rose sharply by 31.2%, indicating faster processing and improved liquidity support for businesses.
Despite higher refunds, net GST revenue remained strong. Net collections for March 2026 stood at ₹1,77,990 crore, reflecting an 8.2% year-on-year growth. On an annual basis, net GST revenue increased by 7.1% to ₹19,34,766 crore.
State-wise Trends Show Mixed Performance
State-level data reveals varied trends in GST collections. Among major states, Maharashtra continued to lead with strong growth, recording a 17% rise in March collections. Karnataka and Telangana also posted healthy increases of 14% and 19%, respectively.
Rajasthan registered a 9% growth in SGST collections, indicating stable economic activity in the state. Uttar Pradesh and Bihar also showed moderate growth of 4% and 12%, respectively.
However, some states recorded declines. Tamil Nadu saw an 8% drop in March collections, while Assam and Chhattisgarh witnessed declines of 15% and 18%, respectively, highlighting regional disparities in economic performance.
Annual Trends Reflect Stable Growth
For the full financial year 2025–26, gross domestic GST revenue grew by 6.4%, while import-based GST collections increased by 14.1%. Net domestic revenue rose by 4.7%, reflecting steady but moderate expansion in internal economic activity.
The number of registered taxpayers (GSTINs) also increased significantly, indicating broader tax base expansion and improved compliance mechanisms.
Compensation Cess Declines
A notable development was the sharp decline in compensation cess collections. Net cess revenue turned negative at ₹-177 crore in March 2026, compared to ₹12,043 crore in March 2025. This reflects the gradual winding down of the compensation cess regime, which continues only as a transitional arrangement to service past liabilities.
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