GST collections cross Rs 2 lakh crore in March, FY26 growth at 8.3 pc

Gross GST revenue stood at Rs 2,00,064 crore in March, compared to Rs 1,83,845 crore in the same period last year. The increase was largely driven by a sharp rise in import-related collections, which grew by 17.8 per cent during the month, reported IANS.

Domestic GST revenues, while steady, grew at a comparatively moderate pace of 5.9 per cent, reflecting stable consumption trends within the country.

Net Collections Show Steady Growth After Refunds

After adjusting for refunds, net GST collections rose 8.2 per cent year-on-year to Rs 1,77,990 crore in March. Refunds during the month increased significantly by 13.8 per cent to Rs 22,074 crore, reported IANS.

Notably, domestic refunds saw a sharp jump of 31.2 per cent, indicating improved compliance mechanisms and faster processing by tax authorities.

FY26 GST Revenue Registers 8.3% Growth

For the full financial year 2025–26, gross GST collections grew 8.3 per cent to Rs 22.27 lakh crore, up from Rs 20.55 lakh crore in FY25. Net GST revenue for the year stood at Rs 19.34 lakh crore, marking a 7.1 per cent increase, reported IANS.

Experts say the consistent rise in GST collections reflects resilient economic activity and strong tax buoyancy, broadly aligned with India’s estimated GDP growth of around 7 per cent.

Import Collections Drive Growth Momentum

A key highlight of the fiscal year was the robust growth in import-related GST collections, which rose by 14.1 per cent. This indicates strengthening trade flows and sustained demand, even amid global economic uncertainties, reported IANS.

Domestic GST revenues also maintained a steady upward trajectory, growing by over 6 per cent during the year, further reinforcing the stability of the tax base.

Higher Refunds Reflect Improved Tax Efficiency

While higher refunds - up nearly 18 per cent during FY26 - moderated net revenue growth, experts view this as a positive sign of improved efficiency in the tax system. Faster clearance timelines and streamlined processes have contributed to enhanced compliance and taxpayer confidence, reported IANS.

However, cess collections during March saw a decline, turning negative at Rs (-177) crore, primarily due to higher refund adjustments.

Consistent Growth Trend Continues

The March figures continue a strong trend seen throughout the year. In February 2026, GST collections had already risen 9.1 per cent year-on-year to Rs 1.84 lakh crore, marking the 12th consecutive month where collections exceeded Rs 1.7 lakh crore, reported IANS.

Overall, the GST performance highlights India’s fiscal stability and its position as a key growth engine in the global economy, supported by rising consumption, improved compliance, and robust trade activity.

(With inputs from IANS)

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