India’s GST Collections Hit All-Time High of ₹2.37 Lakh Crore in April 2025

Image Source: Business Today

India's Goods and Services Tax (GST) collections hit a record high in April 2025, touching an all-time high of ₹2.37 lakh crore. This is the highest monthly collection since the tax regime came into being in July 2017, indicating strong economic activity and enhanced tax compliance across sectors.

Key Highlights
Record Collection: April 2025 GST mop-up was ₹2.37 lakh crore, higher than the earlier high of ₹2.10 lakh crore achieved in April 2024.

Year-on-Year Growth: The collections increased by 12.6% from April 2024, reflecting robust economic momentum.

Domestic Transactions: Domestic transaction revenue increased by 10.7% to around ₹1.9 lakh crore.

Imports: Collection from imported goods increased by 20.8% to ₹46,913 crore, reflecting heightened cross-border economic activity.

Refunds Issued: Refunds increased by 48.3% to ₹27,341 crore during April. After adjusting for refunds, the net GST collection was over ₹2.09 lakh crore, increasing by 9.1% year-on-year.

Sustained Strength: April was the fourth month in a row when GST collections have crossed the ₹1.8 lakh crore barrier, reflecting steady economic revival and compliance enhancement.

What This Means
The all-time high GST collections are a testament to the economic strength of India and the success of recent indirect tax system reforms. Increased consumption, enhanced manufacturing and services production, and enhanced compliance-fostered stronger by digital initiatives such as e-invoicing and fraud detection using artificial intelligence-have all contributed to the growth. The rise in government collections also offers increased fiscal space for infrastructure spending and social welfare programs.

Regional Insights
Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Uttar Pradesh were the major contributors to GST collections in the last few months, with Maharashtra at the forefront. Interestingly, Lakshadweep posted a staggering 287% increase in GST collections, while Andhra Pradesh witnessed a minor decline of 3%.

Looking Ahead
With the economy showing sustained momentum, experts expect GST collections to remain robust in the coming months. The April spike is also attributed to the end-of-financial-year effect, as businesses reconcile their books and settle pending dues in March.

Sources: Outlook Business, The Statesman, The Hindu Business Line, and India Today.