GST Revenue Hits Record Rs 2.37 Lakh Crore in April, Sees 12% Y-o-Y Growth

The goods and services tax (GST) revenue has reached all-time high in April and stood at Rs 2.37 lakh crore, according to government data shown on Thursday. It has registered a 12% year-on-year growth.

This collection has breached the previous high of Rs 2.10 lakh crore in the same month last year. In March, GST collection stood at Rs 1.96 lakh crore. The indirect tax collection system was implemented in 2017.

GST revenue from domestic transactions rose 10.7% to about Rs 1.9 lakh crore, while revenue from imported goods was up 20.8% to Rs 46,913 crore. Refund issuance also rose 48.3% to stand at Rs 27,341 crore during April. After adjusting refunds, net GST collection rose 9.1% to over Rs 2.09 lakh crore in April.

"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,” said Abhishek Jain, partner and head of Indirect Tax at KPMG India.

“It’s good to see that most of the manufacturing states have witnessed double digit growth. The growth in imports is higher than domestic, which needs to be analysed in more detail," said Pratik Jain, Partner, PwC India.

In December, GST collections stood at Rs 1.77 lakh crore, registering a 7.3% year-on-year rise. This marked a slowdown from the 8.5% growth recorded in November, attributed to reduced consumption following the festive season.

In the last Budget, the government estimated an 11% increase in GST revenue for the year, estimating collections at Rs 11.78 lakh crore, including Central GST and compensation cess.

Goods and Services Tax (GST) is among the biggest tax reforms introduced in the history of the Indian fiscal evolution.

Recent GST Controversy

On May 5, the Supreme Court will hear a petition where online gaming companies have challenged the government’s decision to impose a 28% GST on real-money online games.

In the initial GST framework, the online gaming sector was divided into two categories: ‘Games of Skill’ which attracted 18% GST on gross gaming revenue and ‘Games of Chance’ 28 % GST on the full face value of bets.

Games like poker and fantasy sports, which mix skill and luck, created confusion over how they should be taxed. Different platforms followed different rules, leading to legal disputes.

To clear things up, the GST Council changed the law in October 2023. It imposed a flat 28% GST on the full entry fee for all online games — skill or chance — and applied this rule retroactively from August 2017.