India’s Goods and Services Tax (GST) collections surged by 9.9% in March 2025, reaching ₹1.96 lakh crore compared to ₹1.78 lakh crore in the same month last year, according to data released by the Central Board of Indirect Taxes and Customs (CBIC) on April 1. This marks the highest monthly GST collection since April 2024, when it stood slightly higher at ₹2.01 lakh crore.
The net GST collections, which account for refunds, also witnessed an increase of 7.3%, totaling ₹1.76 lakh crore in March 2025, compared to ₹1.64 lakh crore in the corresponding period of the previous year. Experts attribute this rise to strong economic activity, increased compliance, and a year-end sales push by businesses.
Annual GST Collections See Robust Growth
For the financial year 2024-25, India’s total Gross GST collections stood at ₹22.08 lakh crore, reflecting a 9.4% increase compared to ₹20.17 lakh crore collected in 2023-24. Net GST collections for the full fiscal year also grew by 8.6% to ₹19.6 lakh crore, up from ₹18.01 lakh crore in the previous year.
This steady growth in GST collections highlights improved tax compliance and a strong momentum in business activities. Analysts believe that better enforcement mechanisms, digital monitoring, and a rise in e-invoicing adoption have contributed significantly to revenue enhancement.
Regional Trends and Sectoral Performance
Several states recorded notable growth in their GST collections, indicating strong regional economic activity. Maharashtra, Haryana, Uttar Pradesh, and Rajasthan witnessed an increase of over 10% in tax revenues, showcasing robust industrial and trade expansion in these regions.
However, some key industrial states, including Gujarat, Karnataka, Telangana, Andhra Pradesh, and Tamil Nadu, showed moderate growth in GST revenues, ranging between -1% to 7%. This unexpected trend for March, a crucial month for businesses, has prompted tax analysts to call for a deeper assessment of sectoral growth patterns and compliance behavior in these states.
Expert Analysis on Growth Factors
Commenting on the rising GST revenues, MS Mani, Tax Partner at Deloitte, noted that the strong increase in March was largely driven by businesses pushing sales before the fiscal year-end. “The 9.9% increase in Gross GST collections for March reflects the impact of a year-end sales push by businesses. It is encouraging to see that this is not an isolated instance, as GST collections have shown a steady monthly rise, culminating in a 9.4% increase in annual collections,” he said.
Mani also emphasized the need for a closer examination of tax collections from states that have reported lower-than-expected growth. “States like Maharashtra and Haryana have shown impressive growth, but it is unusual to see southern states like Karnataka and Tamil Nadu registering a lower-than-expected increase. A sectoral and compliance-level evaluation is necessary to understand this anomaly,” he added.
Future Outlook for GST Collections
With GST revenues maintaining a steady upward trend, the government is optimistic about meeting its fiscal targets. Analysts expect that continued economic recovery, improved tax compliance, and ongoing digital reforms, such as stricter e-invoicing norms and AI-based fraud detection, will further strengthen GST collections in the coming quarters.
Going forward, policymakers will closely monitor sector-specific trends and regional variations in tax compliance to ensure sustained revenue growth. As businesses adjust to new tax policies and digital tax monitoring tools, the government anticipates a continued positive trend in GST collections in the upcoming financial year.
