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GST collections crossed INR 2 lakh crore in the last month of the financial year, marking one of the highest monthly figures. The rise was supported by both domestic consumption and a sharp increase in import-related tax collections. While tax rate cuts introduced earlier had initially softened revenues, collections have gradually recovered over recent months. Refund payouts also increased, indicating improved compliance and processing. Experts note that while consumption remains stable, future growth may face pressure from global economic factors and inflation trends.
GST collections saw a steady rise in the last month of the financial year, growing around 9 per cent to cross INR 2 lakh crore, according to government data. This marks a return to levels seen before the tax rate cuts introduced in the past year. The increase was supported by higher revenues from both domestic transactions and imports. Advertisement
Gross domestic GST revenues increased by 5.9 per cent to over INR 1.46 lakh crore. At the same time, collections from imports recorded a stronger growth of 17.8 per cent, reaching INR 53,861 crore. In comparison, the GST mop-up during the same month last year stood at INR 1.83 lakh crore.
The latest figures make this one of the top three monthly GST collections recorded during the financial year. The highest collection during the year was reported in the first month at over INR 2.36 lakh crore, followed by over INR 2.01 lakh crore in the subsequent month.
For the full financial year, GST collections grew by 8.3 per cent year-on-year to cross INR 22.27 lakh crore, reflecting stable tax inflows despite structural changes in rates.
The government had earlier reduced GST rates on nearly 375 items to make goods more affordable. The tax structure was also simplified by merging four slabs into two primary rates of 5 per cent and 18 per cent, while a 40 per cent slab was retained for select luxury and sin goods. These changes had initially impacted collections, with revenues dipping to INR 1.70 lakh crore in the early phase of implementation. However, collections gradually improved in the following months, reaching INR 1.74 lakh crore, INR 1.93 lakh crore, and over INR 1.83 lakh crore respectively.
Refund disbursements during the last month rose by 13.8 per cent to INR 22,074 crore. After adjusting for refunds, net GST revenues stood at around INR 1.78 lakh crore, reflecting an 8.2 per cent increase compared to the previous year.
Industry experts pointed out that the growth in GST collections indicates continued strength in consumption. A partner at Deloitte India stated that the overall growth was significantly supported by strong import-related GST collections. He added that the rise in imports also likely led to higher customs duty collections.
State-wise data showed that large states such as Maharashtra, Karnataka, and Telangana continued to record healthy growth in GST collections. In contrast, states including Haryana, Andhra Pradesh, and Madhya Pradesh reported relatively slower growth.
A tax expert from EY India noted that the outlook for the upcoming months may remain cautious due to global economic uncertainties and inflationary pressures, which could affect consumption demand. He also indicated that while year-end sales activity may offer temporary support, sustained growth would require continued policy measures to support manufacturing.
Another industry expert highlighted that GST collections continue to reflect broader economic stability. He observed that the consistent growth in tax revenues aligns with the overall expansion of the economy and provides confidence to both governments and businesses regarding long-term growth sustainability.
Source PTI
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