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NEW DELHI – India’s Goods and Services Tax (GST) collections for March 2025 soared to Rs 1.96 lakh crore, reflecting an impressive 9.9% year-on-year (YoY) growth. This robust increase underscores strong economic activity, buoyant consumption, and enhanced compliance. The rise follows February’s collection of Rs 1.62 lakh crore, which itself recorded an 8.1% YoY growth, indicating sustained fiscal momentum.
Breakdown of March 2025 GST Revenues
- Central GST (CGST): Rs 38,100 crore
- State GST (SGST): Rs 49,900 crore
- Integrated GST (IGST): Rs 95,900 crore (includes Rs 43,500 crore from imports)
- GST Cess: Rs 12,300 crore (including Rs 1,000 crore from imports)
This breakdown reflects India’s stable and growing tax base, with strong participation from businesses across sectors.
State-Wise Performance: Leaders and Laggards For the fiscal year 2024-25, cumulative GST growth reached 9.4% YoY, slightly exceeding the 9.1% growth recorded from April to December 2024.
- Top Performers: Gujarat led the states with a 14% growth in GST collections, contributing Rs 73,281 crore—significantly above the national average. Other standout states included:
- Tripura: 32% increase
- Bihar: 30% increase
- Sikkim: 30% increase
- Meghalaya: 26% increase
- Andaman and Nicobar Islands: 60% increase
These figures highlight thriving regional economies and efficient tax administration driving growth.
- Declining Collections: A few regions, including Jammu and Kashmir, Himachal Pradesh, Manipur, and Dadra and Nagar Haveli and Daman and Diu, saw declines, possibly due to economic slowdowns or administrative hurdles.
GST Refunds See Strong Growth
- Domestic refunds: Up 2.8%
- Total refunds: Surged by 41.2%
- Import-related refunds: Spiked by 201.9%
- FY25 total refunds: Rs 2.52 trillion, a 16.4% YoY increase
The sharp rise in refunds indicates improved tax administration, streamlined processing, and better compliance, fostering a more business-friendly GST system.
Economic Outlook: What’s Next? With GST collections maintaining a strong upward trajectory, India’s fiscal health appears resilient. Policymakers and businesses alike will be watching closely to ensure continued compliance and sustained economic growth. Future policy refinements could further enhance efficiency, particularly in tax administration and inter-state trade regulation..
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