Gross Goods and Services Tax (GST) collections grew 8.7% year-on-year in April (for March transactions) to an all-time high of Rs 2.42 lakh crore, driven by a surge in revenue from imports and also signalling a year-end spurt in transactions amid the West Asia crisis.
Typically, April GST collections tend to be robust, as businesses try to clear tax dues for the fiscal year.
According to official data released by the Ministry of Finance on Friday, gross domestic revenue rose by a modest 4.3% to Rs 1.85 lakh crore, while gross GST revenue from imports stood at Rs 57,580 crore, up 25.8%, reflecting sustained inward shipments even in a volatile external environment. The net GST revenue (after refunds) grew 7.3% to Rs 2.10 lakh crore. The refunds rose 19.3% to Rs 31,793 crore, driven largely by higher domestic refunds, pointing to faster, system-driven processing and improved liquidity flows back to businesses.
Domestic Growth and Import Resilience
Saurabh Agarwal, Tax Partner, EY India, said that while the headline numbers are encouraging, the divergence between modest domestic GST growth and the significant uptick in import-linked collections warrants a strategic pivot. “In an increasingly dynamic global landscape, we must critically re-examine our policy frameworks to further incentivise domestic manufacturing and ensure “Make in India” keeps pace with global supply chain shifts,” Agarwal said.
Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat, however, said that the April collection is underpinned by gross domestic revenue, indicating steady underlying consumption rather than one-off volatility. At the same time, a 25.8% surge in import revenues points to resilient external demand linkages and supply chain normalisation, he said.
The gross collection in April comprises Central GST (CGST) of Rs 52,140 crore, State GST (SGST) of Rs 61,331 crore, and Integrated GST (IGST) of Rs 1.29 lakh crore.
Mahesh Jaising, Partner & Indirect Tax Leader, Deloitte India said that the April GST collections cap off a resilient FY26 for the GST regime despite continued global uncertainty and West Asia related geopolitical headwinds. A steady performance of domestic GST revenue suggests that GST 2.0 led rate rationalisation and simplification measures are beginning to support consumption and demand without materially eroding the tax base, Jaising said.
Ikesh Nagpal, Lead-Indirect Tax, AKM Global, underlined that the year-end push in March driven by higher sales, inventory clearances, and book closures naturally spills over into April, making it the strongest month across most fiscal cycles. “April GST collections are typically elevated, and their consistent peak year after year is no coincidence. The April collections are led by a sharp surge in import-driven revenue, underscoring resilient consumption and trade linkages, even amid GST 2.0 changes and ongoing global uncertainties,” he said.
GST 2.0 Transition
Sequentially, GST collections grew 21.3% from Rs 2 lakh crore in March. “As we transition into the new fiscal year, we should anticipate a stabilization in the coming months, with collections likely seeing a sequential dip in both absolute and percentage terms as the market recalibrates,” Agarwal said.
The government had announced GST rate cuts on 375 items, including essentials, electronics, and automobiles, on September 3, with the changes taking effect from September 22, the first day of Navratri. Following the rate rationalisation, the GST compensation cess ceased to exist effective February 1, and new rates of excise duty on tobacco products and health and national security cess on pan masala came into effect.