NEW DELHI: Net and gross goods and services tax (GST) revenue grew 7.3 per cent and 8.7 per cent year-on-year (Y-o-Y), respectively, to record highs in April, driven primarily by a surge in import-linked collections.
While net GST collection, after adjusting for refunds touched ₹2.11 trillion, gross GST collections reached ₹2.43 trillion, despite the sharp tax cuts announced in September 2025 to boost demand.
Domestic revenue growth, however, remained subdued, according to government data. Collections typically spike in April due to a March-end push by companies to meet sales targets and close their books.
The divergence in trends was visible in the data. Net domestic revenue grew just 0.3 per cent to ₹1.65 trillion, even though gross domestic revenue stood at ₹1.85 trillion, as higher refunds offset gains. In contrast, net GST revenue from imports surged 42.9 per cent to ₹45,784 crore, with gross import revenue at ₹57,580 crore, driving the overall increase.
Refunds rose 19.3 per cent to ₹31,793 crore, led by a 54.6 per cent jump in domestic refunds, while import-related refunds declined by 14 per cent.
Abhishek Jain, indirect tax head and partner at KPMG, said April’s record gross GST collections reflect both cyclical and structural factors. “While year-end adjustments invariably provide a cyclical boost, a record of this magnitude also indicates underlying economic resilience. Stable revenue buoyancy reflects stronger tax administration, digital enforcement, and a widening tax base,” he said.
Pratik Jain, partner at Price Waterhouse & Co, said the current trajectory was broadly in line with expectations but flagged an emerging imbalance. “Post GST 2.0, a steady 7-8 per cent monthly growth appears to be the norm, which is broadly in line with Budget estimates. However, growth in import-led revenues continues to outpace domestic transactions, which could indicate some softness in consumption, possibly reflecting moderation in discretionary spending amid ongoing geopolitical uncertainties,” he noted.
Saurabh Agarwal, partner at EY, highlighted the need for policy recalibration despite strong headline numbers.
“While the headline numbers are encouraging, the divergence between modest domestic GST growth and the sharp 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,” he said.
The government’s faster processing of refunds, he added, is supporting liquidity and industrial momentum. However, Agarwal cautioned that the current spike may not sustain.
“April’s record figures reflect the typical year-end push by businesses and tax authorities, and collections are likely to stabilise in the coming months, with a sequential dip expected as the new fiscal year progresses.”
For FY27, the Centre has set a GST revenue target of ₹10.2 trillion, slightly lower than the ₹10.46 trillion estimated for FY26.
Source: Business Standard
