New Delhi, April 1 (IANS) Domestic gross GST collections rose 8.8 per cent year-on-year to Rs 2 lakh crore in March 2026, driven by steady domestic revenues and a sharp uptick in import-related collections, according to official data released on Wednesday.

Gross GST revenue stood at Rs 2,00,064 crore in March, compared to Rs 1,83,845 crore in the same month last year. The growth was led by a strong 17.8 per cent rise in import revenues, while domestic revenues increased at a relatively moderate performance of 5.9 per cent during the month.

On net basis — after adjusting for refunds — GST collections rose 8.2 per cent year-on-year to Rs 1,77,990 crore in March.

For the full financial year 2025-26, gross GST collections grew 8.3 per cent to Rs 22.27 lakh crore, compared to Rs 20.55 lakh crore in the previous fiscal (FY25), indicating resilient economic activity despite global uncertainties.

Moreover, net GST revenue for the fiscal stood at Rs 19.34 lakh crore, registering a 7.1 per cent increase over FY25.

Refunds during March rose 13.8 per cent to Rs 22,074 crore, with domestic refunds seeing a sharp 31.2 per cent jump, indicating improved compliance and faster processing.

Meanwhile, cess collections showed a sharp decline during the month, turning negative at Rs (-177) crore, primarily due to higher refunds and adjustments.

According to experts, GST collections in FY26 reflect strong tax buoyancy in line with India’s estimated GDP growth of around 7 per cent, underscoring the link between rising consumption, expanding imports and improved compliance.

“Domestic GST revenues grew 6.4 per cent during the year, while import-related collections surged 14.1 per cent, pointing to resilient demand and strengthening trade flows despite global uncertainties,” the experts said.

They added that higher refunds — up nearly 18 per cent — moderated net revenue growth but also indicated improved efficiency in the tax system following faster clearance timelines. Overall, GST trends reinforce fiscal stability and highlight India’s position as a key growth driver in the global economy.

In the previous month, GST collections rose with a similar growth of 9.1 per cent YoY to Rs 1.84 lakh crore in February, which marks the 12th consecutive month where GST revenues have exceeded Rs 1.7 lakh crore.

In February, the increase in collections was driven by a 10.2 per cent rise in domestic GST revenues, which stood at Rs 1.42 lakh crore and a 5.4 per cent growth in revenues from imports, totalling Rs 41,702 crore.

–IANS

ag/na