GST collections in April 2025 hit record high of Rs 2.37 lakh crore

GST collections hit record high! The Goods and Services Tax (GST) revenue reached a record-breaking Rs 2.37 lakh crore in April, showing a 12.6 per cent year-on-year increase, according to official government statistics released on Thursday.This surpassed the previous second-highest collection of Rs 2.10 lakh crore recorded in April 2024, since the implementation of the indirect tax system on July 1, 2017. The collection in March 2025 stood at Rs 1.96 lakh crore.
The GST earnings from domestic transactions increased by 10.7 per cent, amounting to approximately Rs 1.9 lakh crore, whilst revenue from imported goods witnessed a 20.8 per cent growth, reaching Rs 46,913 crore.
The government issued refunds worth Rs 27,341 crore in April, marking a 48.3 per cent increase.
The net GST collection, after accounting for refunds, demonstrated a 9.1 per cent growth, totalling more than Rs 2.09 lakh crore in April.
Commenting on the record collections, Abhishek Jain, Indirect Tax Head & Partner, KPMG said, “The all-time high GST collections are a strong indicator of robust economic activity. While this reflects ongoing recovery and growth, a significant contributor is also the year-end reconciliation process, which typically results in additional tax payments by businesses to align their returns during the year”
Saurabh Agarwal, Tax Partner, EY India believes that the record GST collections underscore the Indian economy's underlying strength in the face of global economic uncertainties.
“This peak revenue indicates widespread economic progress across India, encompassing regions such as Andaman & Nicobar, Lakshadweep, Meghalaya, Nagaland, and Arunachal Pradesh. The government's proactive measures to accelerate export and other GST refunds have eased the working capital burden on industries, a benefit likely to translate to consumers over the medium to long term,” he told TOI.
“The notable GST figures for April may have also been positively influenced by substantial exports to the US market prior to the announcement of reciprocal tariffs. While a potential moderation in absolute GST collections is anticipated next month due to the current global economic climate, the overall outlook for the Indian economy remains optimistic. This positive sentiment is fueled by emerging manufacturing opportunities as businesses seek to establish alternative supply chains globally to mitigate future tariff-related disruptions,” he added.
The government's Budget forecasts anticipate an 11% rise in GST revenue, with projected collections of Rs 11.78 lakh crore, encompassing both Central GST and compensation cess components.