The Goods and Services Tax (GST) collection in Kerala witnessed a 7.9% year-on-year growth, reaching ₹33,109 crore for the financial year ending March 31, 2025, according to data released by the finance ministry. This marks a steady rise in the state’s tax revenue, reflecting economic resilience and improved compliance.
Kerala currently has 4,25,773 registered GST users, with 1.67 lakh taxpayers under the central CGST scheme and 2.58 lakh under the SGST scheme. The state’s share of the GST revenue saw a notable increase of 13.8% year over year, contributing ₹14,702 crore to Kerala’s coffers. In contrast, the central government’s share from the state rose by just 3.7%, amounting to ₹18,406 crore.
In March 2025, Kerala’s monthly GST collection surged to ₹2,829 crore, a 9% increase compared to ₹2,598 crore in March 2024. The overall GST collection in India also grew by 9.9% in March, reaching ₹1.96 lakh crore, compared to ₹1.78 lakh crore in the same month last year.
Among Indian states, Maharashtra led with the highest GST collection for March 2025, totaling ₹31,534 crore, reflecting a 14% growth. On an annual scale, Maharashtra remained the top contributor, amassing ₹3.60 lakh crore, a 12.4% year-on-year increase.
In terms of GST growth rates, Haryana recorded the highest increase at 16%, followed by Delhi at 15.9%. However, some states and union territories saw a decline. Arunachal Pradesh reported an 8.2% drop, while Nagaland and Meghalaya also experienced a decline in collections. The sharpest fall was in the union territory of Lakshadweep, where GST revenue plummeted by 54.2%.
The steady growth in Kerala’s GST revenue highlights the state’s economic momentum, despite varying trends across the country. Experts attribute this rise to enhanced compliance measures, digital tax filing improvements, and economic recovery post-pandemic. As FY26 approaches, Kerala’s tax performance will remain a key indicator of its fiscal health and economic stability.
