Tag: GST

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Beyond

India’s GST crosses ₹2 lakh cr in March

India’s Goods and Services Tax (GST) collections reached ₹2,00,064 crore in March 2026, marking one of the highest monthly revenue figures in recent years. This represents an 8.8% increase compared with March last year, signaling continued economic activity as the country closes the financial year.

The growth comes from both domestic sales and imports. Domestic GST rose by about 5.9%, while GST from imports jumped 17.8%, reflecting higher trade volumes. Net collections, which is the revenue retained by the government after refunds, stood at ₹1.78 lakh crore, up 8.2% year-on-year. Total GST refunds paid in March increased by nearly 14%, slightly reducing net receipts but supporting businesses.

For the full 2025‑26 fiscal year, gross GST collections reached around ₹22.27 lakh crore, up 8.3% from the previous year. Officials say this steady growth shows better tax compliance, robust consumer demand, and strong business activity across sectors.

Economists noted that the sharp rise in import-related GST indicates expanding trade, while the rise in domestic collections points to healthy consumer spending. The performance also comes after recent adjustments in GST rates under reform efforts, which could have affected monthly collections earlier in the year.

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Corporate

Fino Payments Bank denies GST evasion after CEO’s arrest

Fino Payments Bank has clarified that it has not evaded Goods and Services Tax (GST) following the arrest of its Managing Director and Chief Executive Officer, Rishi Gupta, by the Directorate General of GST Intelligence (DGGI).

The arrest is linked to an ongoing investigation into alleged irregular money flows and GST-related issues involving certain third-party programme managers and payment intermediaries. However, the bank has strongly denied any wrongdoing, stating that the case does not concern its own GST filings or compliance record.

In an official statement, Fino Payments Bank said it has consistently followed all regulatory and tax requirements. The lender also rejected reports linking it to betting or online gaming activities, clarifying that it does not promote or facilitate such businesses.

Following Gupta’s arrest, the bank appointed its Chief Financial Officer as interim head and assured customers and investors that daily operations continue as normal. It said there has been no disruption to account services, transactions or business volumes.

The development initially triggered sharp volatility in the bank’s share price, though the stock recovered partially after the company issued clarifications.

Industry bodies, including the Payments Council of India, have raised concerns about the implications of enforcement action against senior executives of regulated financial institutions. Meanwhile, Union Finance Minister Nirmala Sitharaman has indicated that the matter will be reviewed.

Despite the controversy, the bank maintained that its compliance framework remains strong and that the investigation pertains to external entities rather than the institution itself.

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Categories
Beyond

GST collections rise to ₹1.83 lakh cr in February

India’s Goods and Services Tax (GST) mop‑up rose to ₹1.83 lakh crore in February 2026, marking an 8.1% increase compared with the same month last year, government data showed. The figure reflects continued strength in consumption and economic activity despite global headwinds and geopolitical tensions.

The February collection brings the total GST revenue for the current financial year (FY26) to over ₹20.27 lakh crore, surpassing last year’s tally and reinforcing India’s robust tax base. The GST regime, which replaced multiple indirect taxes in 2017, remains a key indicator of domestic demand and business performance across sectors.

Officials said the jump in GST receipts was driven primarily by improved compliance, better revenue enforcement, and sustained consumer spending. Payments of Integrated GST (IGST) on imports and domestic supplies contributed substantially to the overall mop‑up, supported by subdued inflation in many core sectors.

The February GST number also includes a significant portion of cess collections, which are used to compensate states for revenue shortfalls, particularly on account of the implementation of the unified tax system. Analysts noted that the steady growth in collections signals resilience in consumption demand, especially in automobiles, consumer goods, and services.

Experts highlighted that while global uncertainties, including supply chain disruptions and inflation pressures, continue to pose challenges, robust domestic demand has cushioned the impact on revenue streams. “The sustained growth in GST collections reflects the underlying strength of India’s economy,” said one tax expert. “It suggests that businesses are adapting to policy shifts and that consumer confidence remains intact.”

Government officials also pointed to ongoing efforts to widen the tax base and simplify compliance, including digitised processes and stricter anti‑evasion measures, which have contributed to higher net revenue. These efforts, they said, help ensure a more transparent and efficient GST framework.

The February outcome is likely to provide some cushion to fiscal managers as they balance revenue targets with expenditure priorities, especially ahead of budget planning for the next fiscal year. Economists will watch March figures closely, as they often reflect the year’s strongest GST performance.

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Beyond

India’s GDP rises 8.2% in Q2, six-quarter high

India’s GDP recorded a robust 8.2% growth in the second quarter (July–September) of FY 2025–26, marking the fastest expansion in six quarters and exceeding market expectations. The performance comes even before the full impact of the recently announced GST rate cuts has been reflected in the economy.

The secondary sector, which includes manufacturing and industry, grew by around 8.1%, while the tertiary sector, encompassing services such as trade, finance, and transport,  expanded by approximately 9.2%. The primary sector, which covers agriculture, forestry, and mining, posted a modest growth of 3.1%.

Analysts said the growth was supported by strong rural demand, increased government spending, and early export shipments. Consumption showed an uptick ahead of the festive season, partially driven by expectations of lower tax rates under the GST regime.

Despite the upbeat headline numbers, some areas of the economy remain subdued. Urban demand and private investment have yet to pick up significantly, suggesting that growth is currently more dependent on government-led and rural spending.

Economists said sustaining this momentum in the coming months will require a revival in private sector investment and broader consumption across both rural and urban areas.

The Q2 growth indicates that India’s economy continues to show resilience in the face of global uncertainties. If domestic consumption, private investment, and exports continue to strengthen, the country could maintain a healthy growth trajectory in the second half of the fiscal year.

Overall, the numbers reflect a combination of strong rural activity, government support, and industrial recovery, showing that the economy is well-positioned to benefit from policy measures such as GST cuts while navigating ongoing challenges in urban markets and private investment.

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