At Rs 1.8 lakh cr, March mopup second best since GST rollout

India's goods and services tax (GST) collection in March increased 11.5% year-on-year to ₹1.78 lakh crore, the second highest since the launch of the indirect tax regime in July 2017, indicating robust domestic demand.

Total gross collection for FY24 stood at ₹20.18 lakh crore, surpassing the revised budget estimate, compared to ₹18.10 lakh crore in the previous financial year, showed official data released on Monday.

"With the total CGST collections surpassing the FY24 revised estimates, the implicit growth needed to meet the interim budget estimate for FY25 has come down to single-digits, which appears likely to be exceeded," said Aditi Nayar, chief economist, ICRA.


Average monthly collection in 2023-24 stood at ₹1.68 lakh crore, up 17.6% year-on-year.

Most of the large states registered a strong double-digit growth.

"GST collection being also a barometer for economic activities, as it's a transaction-based tax, it can be reasonably inferred that the growth is across regions and sectors," said MS Mani, partner, Deloitte India.

The upcoming general election may push up consumption and GST collection, said experts.

"Looking ahead, the prospects for heightened GST collections in the forthcoming quarter remain promising, particularly in light of the upcoming general election," said Saurabh Agarwal, tax partner, EY.

Experts said the government could raise the 2024-25 GST target.

"With this trend, it will not be surprising if the target for FY25 is revised when the main Union budget is presented after the formation of the new government," said Pratik Jain, partner, PwC India.

Of the total collection in March, central GST stood at ₹34,532 crore, state GST was ₹43,746 crore and integrated GST was ₹87,947 crore, including ₹40,322 crore collected on imported goods.

After regular settlement of IGST, the CGST stood at ₹77,796 crore and SGST at ₹81,450 crore for March.

For 2023-24, the Centre settled ₹4.87 lakh crore towards CGST and ₹4.12 lakh crore towards SGST.