GST collections hit record high at 2.37 lakh crore in April

India's Goods and Services Tax (GST) collection has reached an unprecedented high of Rs 2.37 lakh crore in April 2025, according to official data released today. This remarkable figure represents a substantial 12.6 per cent increase compared to the Rs 2.10 lakh crore collected in the same month last year, underscoring the robust growth trajectory of the Indian economy. This milestone marks the highest GST revenue since the inception of the tax system in July 2017, signaling the effectiveness of tax policies and the nation's economic resilience.

The surge in GST revenue can be attributed to several key factors, primarily the sustained momentum in domestic consumption. As economic activity picks up across various sectors, consumer spending has also seen a significant rise, directly contributing to higher tax collections. Furthermore, enhanced tax compliance measures implemented by the government have played a crucial role in broadening the tax base and reducing tax evasion. The overall improvement in economic activity, driven by both domestic and international factors, has also bolstered GST collections.

A closer look at the data reveals that a significant portion of the April revenue, amounting to Rs 1.9 lakh crore, originated from domestic transactions. This reflects a strong 10.7 per cent year-on-year growth, indicating healthy internal economic activity. Simultaneously, GST from imported goods witnessed an even more impressive surge of 20.8 per cent, reaching Rs 46,913 crore. This substantial increase highlights the growth in cross-border trade and the effectiveness of improved monitoring mechanisms for import-related GST.

In addition to the record collections, the government also processed a substantial amount of GST refunds in April, totaling Rs 27,341 crore. This figure represents a sharp 48.3 per cent increase compared to the refunds processed in April of the previous year. The efficient processing of refunds is crucial for maintaining liquidity in the economy and ensuring smooth business operations for taxpayers.

When compared to the immediate preceding months, the strong performance in April becomes even clearer. GST collections in March 2025 stood at Rs 1.96 lakh crore, showing a 9.9 per cent increase from March 2024 and a 6.8 per cent rise from February’s Rs 1.84 lakh crore. March's collections included Rs 38,100 crore from Central GST, Rs 49,900 crore from State GST, Rs 95,900 crore from Integrated GST, and Rs 12,300 crore as compensation cess, all showing positive growth compared to February's figures.

Among the states, Maharashtra emerged as the top contributor to GST in March 2025, with collections reaching Rs 31,534 crore, a notable 14 per cent increase from the previous year. Karnataka followed with a collection of Rs 13,497 crore, marking a 4 per cent year-on-year growth, while Gujarat contributed Rs 12,095 crore, reflecting a 6 per cent increase. Tamil Nadu and Uttar Pradesh also demonstrated strong performance, reporting collections of Rs 11,017 crore and Rs 9,956 crore, respectively, with annual growth rates of 7 per cent and 10 per cent.