March Gross GST Collection Rises 8.8% With Imports Driving Higher Revenue Growth

Gross goods and services tax collection in March rose 8.8% year-on-year to ₹2 trillion, marking a 10-month high in monthly receipts. The increase was supported by stronger growth in revenues from imports compared with domestic transactions, according to the latest government data released today.

Gross GST revenue from imports rose 17.8% to ₹538.61 billion in March, while gross domestic revenue increased 5.9% to ₹1.46 trillion. The data indicates that the overall rise in collections was largely supported by import-linked taxes rather than domestic production and consumption.

Gross collections do not represent the amount retained by the government, as refunds are deducted to arrive at net revenue. Net GST revenue in March rose 8.2% year-on-year to ₹1.78 trillion, excluding compensation cess receipts. Within this, net domestic GST revenue grew 3.6%, while net GST revenue from imports rose 23.8%, showing a stronger contribution from import-related collections.

In sequential terms, net GST collections increased by more than 10% from ₹1.61 trillion in February. The March figure also represents the highest net collection in the last six months of the revised GST system introduced in September 2025. In absolute terms, March’s net GST revenue exceeded January’s ₹1.70 trillion, although it remained below April’s ₹2.09 trillion, which continues to be the highest monthly collection in 2025–26.

Refunds recorded an increase during the month. Total GST refunds rose 13.8% year-on-year to ₹220.74 billion. Domestic refunds increased 31.2%, while refunds linked to imports declined 10.6%. The divergence suggests higher claims within domestic supply chains, even as import-related refunds moved in the opposite direction.

The compensation cess has largely been phased out. The government discontinued the cess from February 1, 2026, with only residual amounts now being reported. In March, net cess revenue was negligible, with provisional data showing a marginal negative figure of ₹(1.77) billion, reflecting adjustments linked to earlier transactions.

For the full financial year 2025–26, gross GST collections reached ₹22.27 trillion, registering an increase of 8.3% compared with the previous year. Net GST revenue for the year stood at ₹19.35 trillion, reflecting a 7.1% rise, excluding compensation cess. The March data indicates that the final month of the financial year was supported mainly by higher import-linked revenues rather than domestic tax growth.