Analysis of India's GST Revenue for March 2023

India's Goods and Services Tax (GST) revenue reached ₹1,60,122 crore in March 2023, showing an increase from the previous month's ₹1,49,577 crore. This marks the second-highest monthly collection total since April 2022. Additionally, March 2023 saw the highest number of GST returns ever submitted.

Following a decline from January 2023's collection of ₹1,55,922 crore, February's GST collections had decreased. However, March's figures represent a 13% year-on-year growth compared to the previous year. This is only the second time that monthly GST collections have surpassed the ₹1.6 lakh crore threshold since the tax system's inception.

Detailed Breakdown of March 2023 GST Collections

The total GST collections were divided as follows: Central GST (CGST) accounted for ₹29,546 crore, State GST (SGST) for ₹37,314 crore, and Integrated GST (IGST) for ₹82,907 crore. A significant portion of IGST, ₹42,503 crore, was derived from GST on imported goods.

According to the most recent PIB report, cess collections totaled ₹10,355 crore, with ₹960 crore specifically from imported goods. The government's report also indicates that in March 2023, the Centre settled ₹33,408 crore towards CGST and ₹28,187 crore towards SGST from the collected IGST. After these routine settlements, the final revenue for the Centre stood at ₹62,954 crore (CGST) and for the states at ₹65,501 crore (SGST).

Performance Insights into March 2023 GST Revenue

March 2023 stands out for achieving the second-highest monthly GST collection figures since the tax system began. A year-over-year analysis by the GST Network revealed a significant increase in return filings for March 2023. Specifically, 93.2% of GSTR-1 forms and 91.4% of GSTR-3B forms for February 2023 were submitted by March 2023, representing a notable improvement over March 2022's filing rates of 83.1% and 84.7%, respectively.

Revenue from imported goods grew by 8% during March 2023, while domestic transactions, including service imports, saw a 14% year-on-year increase. Overall, GST revenues in March 2023 were 13% higher compared to March 2022, which recorded ₹1,42,095 crore.

For the entire fiscal year 2022-23, cumulative gross GST collections reached ₹18.10 lakh crore, a 22% increase from the previous year. The average monthly gross GST collection for the fiscal year was ₹1.51 lakh crore. Higher collections are often anticipated in the subsequent month due to the year-end financial closing.

State-wise GST Collection Performance in March 2023

Mizoram reported the most significant year-on-year growth in GST collections, with an impressive 91.16% increase, followed by 'Other territory' at 66.48%. Other regions experiencing substantial growth included Andaman and Nicobar Islands, Arunachal Pradesh, Nagaland, and Goa.

Consistent with previous trends, Maharashtra led in absolute GST collections for March 2023, reaching ₹22,695 crore. States such as Karnataka, Gujarat, Tamil Nadu, Haryana, and Uttar Pradesh also demonstrated strong collection figures. Conversely, Ladakh and the Centre's jurisdiction observed a decline in GST revenue during March 2023.

The Ministry of Finance released the report on March 2023 GST collections via a PIB press release issued on April 1, 2023.