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News Topical, Digital Desk : GST collections rose 8.8 percent year-on-year to over Rs 2 lakh crore in March 2026, driven by a strong domestic economy and a sharp increase in import-related GST collections. According to the data, domestic revenues rose 5.9 percent to over Rs 1.46 lakh crore, while import revenues rose 17.8 percent to Rs 53,861 crore.
Gross GST collection in March was ₹200,064 crore ( GST Collection March 2026 ), compared to ₹183,845 crore in the same month last year. This increase was due to a sharp 17.8 percent increase in GST on imports.
How were the GST collection figures?
GST on household goods increased by 5.9 percent year-on-year. Excluding refunds of ₹22,074 crore, net GST collections in March increased by 8.2 percent year-on-year to ₹1,77,990 crore.
For the full fiscal year 2025-26, gross GST collections are expected to grow by 8.3 per cent to Rs 22.27 lakh crore, compared to Rs 20.55 lakh crore in the previous fiscal (FY 2025).
This indicates robust economic activity despite global uncertainties. Furthermore, net GST collections (excluding refunds) for FY 2025-26 are estimated at ₹19.34 lakh crore, an increase of 7.1 percent over FY 2024-25.
Decline in cess collection
Meanwhile, cess collections recorded a sharp decline during the month and turned negative at Rs (-177) crore, mainly due to higher refunds and adjustments. According to experts, GST collections in FY2026 reflect strong tax growth in line with India's projected GDP growth (around 7 percent), underscoring the link between rising consumption, expanding imports and improved compliance.
Like the previous month, GST collections in February also recorded a 9.1 percent annual growth to ₹1.84 lakh crore. The increase in collections in February was mainly driven by a 10.2 percent increase in domestic GST revenues and a 5.4 percent increase in GST revenue from imports.
What did experts say on GST collection figures?
Vivek Jalan, Partner, Tax Connect Advisory Services, said, "India's GST collections in FY 2025-26 provide a strong financial reflection of the country's GDP growth trajectory. This tax surge is in line with India's projected GDP growth (around 7%) for FY 2025-26. It underlines the link between rising consumption, increasing imports, and robust compliance. The 6.4% year-on-year growth in domestic GST revenues and 14.1% growth in import-related GST highlights both strong domestic demand and growing trade flows into India, even amid geopolitical challenges."
He further stated that while refunds – which grew by nearly 18% during the year – may have slightly slowed net revenue growth, they also indicate improved efficiency in the tax system. This improvement follows the 'GST 2.0' initiative, which mandates processing 90% of refunds within seven days from November 2025.
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