Net GST collection surges by 7.3% to Rs 1.76 trillion in March 2025

The gross GST collection - the amount before adjusting for refunds - rose by 9.9 per cent in March to Rs 1.96 trillion

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The net goods and services tax (GST) collection grew marginally by 7.3 per cent year-on-year (Y-o-Y) to ₹1.76 trillion in March, according to provisional data released by the government on Monday. Sequentially, the mopup was higher than February’s ₹1.62 trillion, which saw 8.1 per cent Y-o-Y growth.

 

The gross GST collection — the amount before adjusting for refunds — rose by 9.9 per cent in March to ₹1.96 trillion.

 

Domestic refunds rose by 2.8 per cent, while total refunds, including those on imports (201.9 per cent Y-o-Y), climbed by 41.2 per cent to ₹0.19 trillion.

 

From April-March period of financial year 2024-25 (FY25), total refunds grew by 16.4 per cent Y-o-Y to ₹2.52 trillion.

 

Cumulatively, from April-March FY25, growth in total gross GST collections rose at a slower pace of 9.4 per cent Y-o-Y, compared to 11.7 per cent in FY24.

 

The growth in net GST collections at 8.6 per cent in FY25, as per the latest government data, stood below the revised estimate in the Budget at 10.9 per cent. 

 

According to Abhishek Jain, indirect tax head & partner, KPMG, a nearly 10 per cent growth in gross GST collections compared to last year reflects economic stability and strong tax compliance by companies.

 

"With financial year-end adjustments and reconciliations underway, we can expect a further surge in month-on-month (M-o-M) growth in the next set of collection," Jain said.

 

Meanwhile, Pratik Jain, partner at PwC India, expressed concern about the single-digit growth in net GST revenue collection.

 

“Single-digit growth in GST revenue for the month of March would be a bit of concern for the government, though partly it seems to be because of higher refunds compared to last year. One can expect more rigour in GST audits and scrutiny to plug leakages. The slowdown in consumption is an area which also needs to be addressed," Jain of PwC stated.

 

Many states and Union Territories (UTs) such as Tripura (32 per cent), Bihar (30 per cent), Sikkim (30 per cent), Meghayala (26 per cent), and the Andaman & Nicobar Islands (60 per cent) registered double-digit growth on Y-o-Y basis in March.

 

However, states and UTs such as Jammu & Kashmir (-1 per cent), Himachal Pradesh (-3 per cent), Manipur (-18 per cent), and Dadra and Nagar Haveli and Daman & Diu (-15 per cent) saw negative growth Y-o-Y during the same month.

 

"Notably, widespread GST collection growth across states like Bihar, Tripura, Meghalaya, Chhattisgarh, Goa, Lakshadweep, and Andaman & Nicobar signifies balanced economic expansion across the nation," said Saurabh Agarwal, tax partner with EY.