India’s March GST Collection Crosses Rs 2 Lakh Crore; Jumps 8.8% YoY
India’s gross Goods and Services Tax (GST) collection scripted history in March 2026, crossing the monumental Rs 2 lakh crore for the first time. Official data released on Wednesday showed a 8.8% year-on-year growth compared to the same month last year. The surge reflects resilient domestic consumption and improved tax compliance as the country closes out the 2025-26 financial year (FY26) on a high fiscal note.
The Ministry of Finance reported that gross GST collections for March 2026 reached Rs 2,00,000 crore, a significant leap from the Rs 1.83 lakh crore recorded in February. This 8.8% YoY growth is primarily attributed to a 17.8% spike in import-related GST revenue, which stood at Rs 0.54 lakh crore. Domestic revenue also showed steady strength, rising 5.9% to reach Rs 1.46 lakh crore.
After accounting for refunds worth Rs 0.22 lakh crore, which saw a 13.8% YoY increase, the net GST revenue for March stood at Rs 1.78 lakh crore. This represents an 8.2% rise compared to the previous month, signaling that the "GST 2.0" reforms and technology-driven monitoring are successfully curbing leakages and expanding the tax base.
Regional Performance and Industrial Growth
State-wise data for March 2026 showed the dominance of industrialized states in driving the national kitty. Maharashtra remained the largest contributor with a pre-settlement collection of Rs 0.13 lakh crore. It was followed closely by Karnataka and Gujarat. Other states showing strong post-settlement SGST growth included Uttar Pradesh, Tamil Nadu, Telangana, and Haryana.
However, the reporting period showed a mixed picture across the country. While 14 major states recorded positive growth, several regions, including West Bengal, Odisha, and Chhattisgarh, saw slight contractions in their post-settlement revenues. The disparity means a shift in consumption patterns and industrial output across different economic hubs as the new financial year (FY27) begins.
The March figures take the total gross GST collection for the full financial year 2025-26 to over Rs 22.27 lakh crore. The expansion of the tax base, now exceeding 1.5 crore taxpayers, is expected to provide the government with significant fiscal room for capital expenditure in the coming months.
As India enters the first quarter of FY27, the focus remains on the transition to a simplified two-rate structure under GST 2.0. It is expected to further reduce compliance costs and boost household consumption.
Published By : Shourya Jha
Published On: 1 April 2026 at 12:06 IST