April GST numbers are here and they're off the charts
India's goods and services tax (GST) collection hit an all-time high of ₹2.1 lakh crore in April, underlining the robust economy and kicking off the new fiscal year on a strong note. This also creates room for the much-anticipated reform of the GST regime when the new government takes charge after general elections.
«GST collection crosses ₹2 lakh crore benchmark, thanks to the strong momentum in the economy and efficient tax collections,» finance minister Nirmala Sitharaman posted on X, formerly Twitter. GST collection rose 12.4% in April from ₹1.87 lakh crore a year earlier on the back of a 13% rise in domestic transactions that point to healthy local demand. The previous monthly record was ₹1.87 lakh crore in April 2023.
India's economy is estimated to have grown 7.6% in FY24. The IMF expects India's GDP to expand 6.8% in FY25, retaining its status as the world's fastest-growing major economy. Total GST collection was ₹1.78 lakh crore in March while the monthly average for FY24 was ₹1.68 lakh crore.
Experts said the sustained high growth augured well for reform of GST, including changes in the slabs that may entail some revenue loss. «It may also enable the government to take bolder decisions such as rate rationalisation or bringing products such as ATF (aviation turbine fuel) and natural gas under the GST ambit,» said Partik Jain, partner, PwC India. «It's particularly encouraging to see that growth is largely led by domestic consumption.»
The current GST regime is regarded as being too complex due to
