April recorded the highest ever Goods and Services Tax (GST) collections of a whopping Rs 2.37 lakh crore, according to official data released on Wednesday. Amidst fears surrounding global tariff wars, April’s robust performance is indicative of strengthening domestic consumption and compliance efforts, slated to boost markets. Ever since the inception of GST in 2017, this rise of 12.6% when compared with April of 2024 has been unprecedented. Steadily increasing revenues in recent months show a continuation of the positive trend witnessed earlier this year, as projected by the Union Budget for the financial year – an 11% rise in GST revenues and an aim for Rs 11.78 lakh crore from the tax, including Central GST and compensation cess.
The latest data reveals February revenues of Rs 1.83 lakh crore (a 9.1% year-on-year growth); March collections amounting to Rs 1.96 lakh crore (a 9.9% increase from the previous year); while January also recorded Rs 1.96 lakh crore, reflecting a 12.3% increase. In December, collections stood at Rs 1.77 lakh crore, slower as compared to the 8.5% increase seen in November, which was attributed to reduced consumer spending post the festive season. April’s GST collection surge, however, is largely attributed to year-end sales and increased business activity as companies closed their annual accounts, filed returns and cleared dues. It also underscores the country’s resilience when it comes to consumption patterns.
When it comes to regional players, performances varied – Lakshwadeep lead with a 287% increase in collections followed by ‘Other Territory’ at 160%. In the east, Arunachal Pradesh projected noteworthy growth at 66% while Meghalaya and Nagaland showed increase by 50% and 42% respectively. States like Haryana, Bihar, and Gujarat also posted double-digit growth figures while Andhra Pradesh, Tripura, and Mizoram projected declines, with the latter 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,” said Vivel Jalan, partner, Tax Connect Advisory Services LLP, adding, “For example, 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.”
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