The product and services tax collections (TPS) for March 2025 have reached an important step, going to Rs 1.96 Lakh crores. This marks an impressive 9.9% increase in annual shift, highlighting the strengthening of economic activities across the country. The increase in collections is a positive indicator of budgetary health and suggests a robust consumption model among consumers and businesses. This figure is significantly higher than the collection of the previous month of RS 1.62 Billion, which had already demonstrated growth of 8.1% in annual shift.
By breaking down the components of the TPS, the central collections of the TPS rose to Rs 38,100 crosses, while the GST collections of the State amounted to Rs 49,900 crore. The integrated TPS, which includes taxes on the interstate offer of goods and services, has reached 95,900 rapes. In addition, the TPS CESS, which is deducted from the provision of certain goods and services to compensate for the loss of income against the States, came to Rs 12,300. These figures have generalized participation in the TPS system by consumers and businesses, reflecting the maturity of the system and its role as a stable source of income for the government.
State data
The cumulative growth of the TPS collections from April 2024 to March 2025 was 9.4% in annual sliding, a slight increase compared to the growth of 9.1% recorded for the period from April to December. This period saw various States and territories of the Union with significant growth rates. For example, the benefits of TPS Gujarat increased by 14% during the year 2024-25 compared to the previous financial year, reaching 73,281-free lines, an increase well above the average national growth rate. Such a performance highlights the significant contribution of Gujarat to national GDP thanks to its effective tax collection mechanisms.
Several States and territories of the Union have experienced two -digit growth in TPS collections, demonstrating the various economic activities between regions. Tripipura, Bihar, Sikkim, Meghalaya and the Andaman and Nicobar Islands have shown substantial increases in annual sliding, recording 32%, 30%, 30%, 26%and 60%of growth respectively. These figures reflect growing economic commitments and investments in these fields, positively contributing to the Global TPS collection. Conversely, regions like Jammu and Cashmire, Himhal Pradesh, Manipur, Dadra and Nagar Haveli and Daman and Diu were faced with declins, indicating challenges that could be due to local economic conditions or administrative obstacles.
The growth of internal reimbursements, which increased by 2.8% and the substantial increase of 41.2% of the total reimbursements, including a remarkable increase of 201.9% in annual imports of imports, highlights improvements in the tax administration system. This efficiency in the treatment of reimbursements could further encourage compliance and participation in the TPS framework. The overall growth in the reimbursement from April to March during financial year 25 was 16.4% in annual shift, or 2.52 rumber of rupees, reflecting government efforts to rationalize tax operations and facilitate smoother transactions for businesses. These developments indicate a regular route to improve the efficiency of the tax system of India, benefiting both from government and taxpayers.
