India's GST Revenue Hits New High

In a remarkable display of economic stability and compliance, India's GST revenue collection witnessed a 9.9% year-over-year increase, reaching Rs 1.96 lakh crore in March 2025. This growth underscores the country's robust tax collection mechanism and the increasing compliance among businesses.

Breakdown of Collections

The detailed breakdown reveals Central GST at Rs 38,100 crore, State GST at Rs 49,900 crore, Integrated GST at Rs 95,900 crore, and GST cess collections totaling Rs 12,300 crore for March. Abhishek Jain, Indirect Tax Head & Partner, KPMG, commented on the growth, highlighting the significance of fiscal year-end adjustments and the potential for further increases.

Annual Growth Highlights

The net GST collections for March stood at Rs 1.76 lakh crore, marking a 7.3% year-over-year growth. For the fiscal year 2024-25, gross GST collections totaled Rs 22.08 lakh crore, a 9.4% increase, with net collections after refund adjustments at Rs 19.56 lakh crore, up by 8.6%.

Monthly Performance Insights

February's collections rose by 9.1% to Rs 183,646 crore, driven by domestic revenue sources, while January saw a 12.3% growth compared to the previous year. December's collections, although showing a 7.3% increase, reflected a slowdown from November's 8.5% growth, attributed to reduced post-festive season spending.

Government's Fiscal Outlook

The government's Budget projects an 11% increase in GST revenue for the year, with anticipated collections of Rs 11.78 lakh crore, including Central GST and compensation cess, signaling confidence in continued economic growth and tax compliance.