NEW DELHI: Goods and services tax (GST) collections rose 8.8% in March to cross the Rs 2 lakh crore mark for the first time since rates were lowered in Sept.Latest data showed that collections from domestic sources, based on transactions in Feb, went up nearly 6% to Rs 1,46,202 crore.
The kitty based on imports expanded nearly 18% to Rs 53,861 crore, pointing to the impact of higher gold and silver imports, amid hardening of global oil prices towards the end of Feb when tension in West Asia was building up.“There has been a significant increase in imports, which has contributed to the GST collections on imports; this would also have led to a significant increase in the customs duty collections. Since these figures relate to the production/ consumption during Feb 2026, they do not reflect the impact of the ongoing crisis in West Asia,” said M S Mani, partner at Deloitte India.While there may be some impact of the conflict on next month’s collections, some of that may be offset by the year-end sales rush as companies typically step up dispatches in March to meet their sales targets.“Looking ahead to April, we anticipate a cautious trajectory. Geopolitical headwinds and global inflationary pressures are likely to compress consumption demand. While the traditional year-end sales may provide a tactical buffer, the mid-term outlook necessitates continued policy intervention to sustain manufacturing momentum against global volatility,” Saurabh Agarwal, tax partner at EY India.
While overall refunds were 13.8% higher at Rs 22,000 crore in March, refunds on imports fell 10.6%. On a net basis, collections went up 8.2% during the month.“Refunds, which expanded nearly 18% during the year, moderated net revenue growth but also signalled improved efficiency in the tax system, after GST 2.0 impetus on clearing 90% of the refunds within seven days from Nov 2025. Overall, GST collections not only reinforce fiscal stability but also validate the broader macroeconomic narrative: India’s tax system is keeping pace with GDP expansion, providing govts and businesses alike with confidence in the sustainability of growth,” said Vivek Jalan, partner at Tax Connect Advisory Services.
