Goods and Services Tax (GST) collections soared to a record high in April, reaching Rs 2.37 lakh crore, according to official data released on Wednesday. This represents a 12.6% rise compared to the same month last year and marks the highest monthly collection since the GST’s inception in 2017. The robust performance in April follows steadily increasing revenues in recent months, indicative of strengthening domestic consumption and compliance efforts.
The latest figures show a continuation of the positive trend seen earlier in the year, with March collections amounting to Rs 1.96 lakh crore, a 9.9% increase from the previous year. February saw GST revenues of Rs 1.83 lakh crore, marking a 9.1% year-on-year growth, primarily driven by strong domestic demand. January also recorded Rs 1.96 lakh crore, reflecting a 12.3% increase. These consistent gains underline the resilience of India’s consumption patterns, with tax revenues benefiting from heightened business activity and compliance.
The surge in April’s GST collections is largely attributed to year-end sales and increased business activities as companies closed their annual accounts. This period, which coincides with the end of the financial year, typically sees businesses filing returns and clearing dues, boosting tax receipts. The Union Budget had projected an 11% rise in GST revenues for the financial year, aiming for Rs 11.78 lakh crore from the tax, including Central GST and compensation cess, further implying a strong start to the fiscal year.
Regional performances varied significantly, with Lakshadweep leading with a 287% increase in collections, followed by ‘Other Territory’ at 160%. Among states, Arunachal Pradesh showed significant growth at 66%, while Meghalaya and Nagaland increased by 50% and 42%, respectively. Larger states like Haryana, Bihar, and Gujarat also posted double-digit growth figures, reflecting broad-based economic momentum. Conversely, Andhra Pradesh, Tripura, and Mizoram experienced declines, with Mizoram showing the steepest drop at 28%.
“Amidst the global tariff war, the disruption caused by the heinous attack in Kashmir, and the related uncertainties, the growth of Net GST revenues by 9.1% over last year shows the firm resolve of the Country to keep the dream of ‘Viksit Bharat’ going, amidst all odds. However, what stands out is the stark variation between the growth of GST revenues of the Central vis-à-vis state jurisdictions in certain states. For Eg. in Tamil Nadu, the growth in GST revenues of Central formulations is 9.3% while that in State formulation is 17%. This aspect may be looked into by the State CGST and SGST Authorities. It would be just that taxpayers, whether in State or in Centre jurisdictions, would be consistently treated,” said Vivek Jalan – Partner Tax Connect Advisory Services LLP.
During February, the collections from goods and services tax saw a 9.1% increase to Rs 183,646 crore, mainly driven by a double-digit growth in revenue from domestic sources. In January, GST collections reached Rs 1.96 lakh crore, showing a 12.3% rise compared to the previous year. In December, collections stood at Rs 1.77 lakh crore, reflecting a 7.3% year-on-year growth. This growth rate in December was slower compared to the 8.5% increase seen in November, which was attributed to reduced consumer spending post the festive season.
In the Budget, the government has forecasted an 11% growth in GST revenue for the year, with estimated collections of Rs 11.78 lakh crore, including Central GST and compensation cess.
