GST Collections Surge 9.9% YoY in March 2025 to ₹1.96 Lakh Crore; Gujarat Leads with 14% Growth

India’s Goods and Services Tax (GST) collections for March 2025 surged to ₹1.96 lakh crore, reflecting a 9.9% increase compared to the same month last year. This growth highlights the rising economic activity across the country. The latest figures also mark a significant jump from February 2025’s GST collection of ₹1.62 lakh crore, which had shown an 8.1% year-on-year rise.

Breakdown of GST Components

The total GST revenue for March was divided as follows:

• Central GST (CGST): ₹38,100 crore

• State GST (SGST): ₹49,900 crore

• Integrated GST (IGST): ₹95,900 crore (includes taxes on inter-state supply of goods and services)

• GST Cess: ₹12,300 crore (levied to compensate states for revenue loss)

These numbers indicate widespread GST participation by businesses and consumers, solidifying GST as a key revenue source for the government.

State-Wise Performance: Gujarat Leads Growth

Between April 2024 and March 2025, GST collections grew by 9.4% YoY, slightly higher than the 9.1% growth recorded from April to December 2024. Gujarat stood out with a 14% increase, reaching ₹73,281 crore, surpassing the national average and reinforcing its role as an economic powerhouse.

Other states and union territories that saw double-digit growth in GST collections include:

• Tripura: 32%

• Bihar & Sikkim: 30% each

• Meghalaya: 26%

• Andaman & Nicobar Islands: 60%

This sharp rise indicates strong business activity and increased tax compliance in these regions. However, some areas, such as Jammu & Kashmir, Himachal Pradesh, Manipur, and Dadra and Nagar Haveli and Daman and Diu, saw a decline in collections, possibly due to economic challenges or administrative hurdles.

Growth in Refunds Indicates Improved Tax System

A key positive development was the increase in tax refunds:

• Domestic refunds rose by 2.8%

• Overall refunds, including imports, jumped by 41.2%

• Refunds from imports surged by 201.9% YoY

• Total refunds from April 2024 to March 2025 stood at ₹2.52 trillion, up 16.4% YoY

Conclusion

These improvements suggest a more efficient tax administration system, which could encourage better compliance and smoother transactions for businesses. Overall, the steady rise in GST collections and refunds reflects a robust and growing economy, positioning India for continued fiscal stability.

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