GST revenue for April sets new record at Rs 2.37 lakh cr, pace of collection highest in 17 months: Govt report

Goods and Services Tax (GST) collection hit an all-time high of approximately Rs 2.37 lakh crore in April, marking a 12.6 per cent increase year-on-year, according to government data released on Thursday (May 1).

In April 2024, the GST revenue was Rs 2.10 lakh crore, making it the second-highest collection since the implementation of the indirect tax system on July 1, 2017. For comparison, the collection in March 2025 was Rs 1.96 lakh crore.

The revenue from domestic transactions rose by 10.7 per cent to about Rs 1.9 lakh crore, while revenue from imported goods saw a more significant increase of 20.8 per cent, reaching Rs 46,913 crore.

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The issuance of refunds also surged by 48.3 per cent, totaling Rs 27,341 crore in April.

After accounting for refunds, the net GST collection increased by 9.1 per cent, totaling over Rs 2.09 lakh crore for the month.

April marks the fourth consecutive month when collections have remained above the Rs 1.8 lakh crore mark.

What is GST?

The GST is a comprehensive, destination-based indirect tax levied on the supply of goods and services in India. It was introduced to replace a complicated web of central and state taxes such as value-added tax (VAT), service tax, and excise duty, among others.

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GST is structured as a dual tax system. Central GST (CGST) is collected by the central government on intra-state sales. State GST (SGST) is collected by the state government on the same intra-state transaction. Integrated GST (IGST) is levied by the Centre on inter-state supplies and imports, with revenues shared between the Centre and states.

Why does record-high GST collections matter?

A record-high GST collection matters because it indicated the following:

1. Economic activity: High GST collections usually suggest robust consumption demand, greater business turnover, and strong manufacturing and services performance. Since GST is levied at every stage of value addition, increased collections generally reflect heightened economic activity.

2. Improved tax compliance: Technology-driven measures such as e-invoicing, AI-based fraud detection, and data analytics have helped plug revenue leakages and reduce evasion.

3. More revenue for government spending: Higher GST revenues mean more fiscal space for the Centre and states to fund infrastructure, social welfare programs, and development schemes without significantly increasing borrowing.

More to come