New Delhi, 1 April. Gross Goods and Services Tax (GST) collections have increased by 8.8 percent on an annual basis to Rs 2 lakh crore in March 2026. The reason for this is the strengthening of the domestic economy and the sharp increase in GST collection to imports. The central government gave this information on Wednesday.

The gross GST income in March was Rs 2,00,064 crore whereas it was Rs 1,83,845 crore in the same month last year. The reason for this increase is the sharp increase of 17.8 percent in GST on imports. However, GST on household goods has increased by 5.9 percent on an annual basis.

If refunds of Rs 22,074 crore are removed, net GST collections in March increased by 8.2 per cent year-on-year to Rs 1,77,990 crore. For the full fiscal year 2025-26, gross GST collections increased by 8.3 percent to Rs 22.27 lakh crore compared to Rs 20.55 lakh crore in the previous fiscal year (FY25). This indicates strong economic activity despite global uncertainties.

Moreover, the net GST collection (excluding refunds) for FY 2025-26 stood at Rs 19.34 lakh crore, 7.1 per cent higher than FY 2024-25. 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 show strong tax growth in line with India’s projected GDP growth (about 7 per cent), underscoring the link between rising consumption, expansion in imports and better compliance.