GST collections in March rose 9% year-on-year to over Rs 2.10 lakh crore, making it the third-highest collection in FY26, reflecting strong economic activity and improved compliance.

Key Highlights

• GST collections in March cross ₹2 lakh crore, driven by strong imports and compliance growth.
• Experts warn global headwinds may impact future GST collections despite strong March performance trends.

The growth in GST collections in March was supported by a 6.8% increase in domestic transactions and a 13.6% rise in revenue from imports, indicating robust demand and trade activity across sectors.

According to official data, Central GST (CGST) stood at around Rs 41,000 crore, State GST (SGST) at approximately Rs 51,000 crore, while Integrated GST (IGST) collections, including import-related taxes, contributed over Rs 1.08 lakh crore. Cess collections also added to the overall revenue performance.

Experts attribute the steady rise in GST revenues to improved compliance, anti-evasion measures, and the expansion of the formal economy. The continued use of e-invoicing and data analytics tools has strengthened tax monitoring and reduced leakages.

M S Mani, Partner at Deloitte India said, “While consumption sentiment remains strong, a significant part of GST growth is driven by import taxes. The surge in imports has boosted GST collections and is also likely to result in higher customs duty revenues."

Also Read: GST Collections Rise Nearly 3% in Feb, Growth Moderates After Jan Peak

At the same time, experts have flagged caution for the coming months amid global uncertainties.

Saurabh Agarwal, Tax Partner at EY India noted, “Geopolitical headwinds and global inflationary pressures are likely to compress consumption demand. While year-end sales may offer short-term support, continued policy intervention will be required to sustain manufacturing growth amid global volatility."

The rise in collections also mark a strong close to FY26, with consistent monthly revenues above Rs 1.7 lakh crore, reinforcing the government’s fiscal position and revenue stability. Overall, the latest data on GST collections in March highlights the resilience of India’s economy and signals sustained momentum in tax collections driven by stronger compliance and economic growth.