The Goods and Services Tax (GST) collection in India reached an all-time high in April 2025, amounting to Rs 2.37 lakh crore, marking a 12.6% year-on-year increase. This is the highest monthly GST collection since the introduction of the tax in 2017, underscoring the robust performance of the Indian economy.
The rise in GST revenue for April follows a trend of strong growth in previous months. In March, GST collections stood at Rs 1.96 lakh crore, reflecting a 9.9% year-on-year rise, while February saw collections of Rs 1.83 lakh crore, growing by 9.1%. Even January’s figures were strong, with a total collection of Rs 1.96 lakh crore, a 12.3% increase compared to the previous year. The growth in these months has been driven by consistent domestic consumption and rising business activity.
In contrast, GST collections in December 2024 reached Rs 1.77 lakh crore, showing a more modest 7.3% year-on-year growth. However, the increase in December was lower compared to November, which had seen an 8.5% rise, reflecting the typical slowdown after the festive season.
The significant jump in April’s GST revenue can be attributed to several factors, including year-end sales, improved compliance, and heightened business activity. GST numbers for April generally reflect transactions from March, which marks the end of the financial year. Businesses often close accounts, file returns, and clear dues during this period, leading to a surge in collections.
In the Union Budget 2025, the government had forecast an 11% rise in GST revenue for the fiscal year, targeting a total of Rs 11.78 lakh crore in GST collections, including revenue from Central GST and compensation cess.
The growth in GST collections was not uniform across the country, with certain regions showing impressive increases. Lakshadweep led the way with a massive 287% growth, followed by the "Other Territory" category, which saw a 160% rise. Among states, Arunachal Pradesh recorded a 66% increase, while Meghalaya (50%), Nagaland (42%), Sikkim (17%), and Manipur (16%) contributed to the strong performance of the Northeast region.
Several other states recorded double-digit growth, including Haryana (16%), Bihar (15%), Gujarat (13%), Tamil Nadu (13%), Jammu and Kashmir (12%), Rajasthan (12%), West Bengal (12%), Telangana (12%), Madhya Pradesh (12%), Uttarakhand (11%), Punjab (11%), Uttar Pradesh (11%), Karnataka (11%), Maharashtra (11%), and Dadra and Nagar Haveli (11%).
On the other hand, some states experienced more modest growth, such as Puducherry (8%), Himachal Pradesh (8%), Chandigarh (7%), Delhi (6%), Odisha (5%), Goa (5%), Chhattisgarh (3%), and Ladakh (3%). Notably, three states saw a decline in GST collections: Andhra Pradesh (-3%), Tripura (-7%), and Mizoram, which recorded the steepest decline at -28%.
This growth in GST collections underscores the resilience of India's economy and the effectiveness of the government's tax measures in boosting compliance and business activity. It also highlights the important role of the GST system in supporting economic growth and financial transparency across the country.
