GST revenue hit record high of Rs 2.43 lakh crore in April despite Iran war

New Delhi: Gross revenue collection from goods and services tax (GST) rose to a record high of Rs 2.43 lakh crore in April, registering 8.7% year-on-year growth, led by strong import-linked revenues despite the West Asia-related geopolitical headwinds, official data showed on Friday.

Gross GST receipts from imports surged by 25.8% to Rs 57,580 crore in April, while gross domestic GST collections recorded a comparatively moderate 4.3% year-on-year growth to reach Rs 1.85 lakh crore.

After accounting for refunds, net GST collections in the first month of the current financial year stood at Rs 2.11 lakh crore, which is 7.3% higher than the same month last year, as per data released by the Union Finance Ministry.

The April 2026 GST collection is the highest-ever monthly mop-up. The previous high was Rs 2.37 lakh crore recorded in April 2025. The indirect tax revenue collections are typically strong in April due to year-end book reconciliations by businesses in March.

Mahesh Jaising, Partner & Indirect Tax Leader, Deloitte India, said the nearly 26% growth in import‑linked GST revenue reflects sustained trade flows even in a volatile external environment.

“Equally important is the steady performance of domestic GST revenues, which suggests that GST 2.0‑led rate rationalisation and simplification measures are beginning to support consumption and demand without materially eroding the tax base,” he added.

The net GST revenue from imports surged 42.9%, significantly outpacing the marginal 0.3% rise in net domestic collections.

Refunds increased by about 19% year‑on‑year, driven largely by higher domestic refunds.

Vivek Jalan, Partner, Tax Connect Advisory Services, said the robust revenue in April was powered by a 42.9% jump in net customs GST collections, reflecting higher import costs amid global supply chain disruptions and war‑driven commodity movements.

“A major compliance shift also shaped April’s inflows: the recalibration of ITC (input tax credit) set‑off sequencing on the GST portal, following withdrawal of the February 2026 advisory that had temporarily allowed IGST liability to be set off first against SGST credit,” Jalan said.

“Post GST 2.0, a steady 7–8% monthly growth seems to be emerging as the norm, which is broadly in line with budget estimates,” said Pratik Jain, Partner, Price Waterhouse & Co LLP.

“Notably, growth in import-led revenues continues to outpace domestic transactions, which could indicate some softness in consumption—possibly reflecting a moderation in discretionary spending amid ongoing geopolitical uncertainties,” Jain said.

State-wise data showed a mixed trend. Large states such as Maharashtra, Karnataka and Gujarat continue to lead the revenue collection. Uttar Pradesh, Haryana, Kerala and Telangana posted strong increases, while Bihar, Assam, West Bengal and Jharkhand saw declines in pre-settlement revenues.

“Several large manufacturing and consuming states have reported low single-digit growth, including Gujarat at 3% and Maharashtra, Karnataka and Haryana at 5% - this requires deeper sectoral analysis,” said MS Mani, Partner, Deloitte India.