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GST Monitor: GST collections hit an all-time high...

...and reach INR2.4t in Apr’25

* GST collections hit an all-time high of INR2.4t in Apr’25, reflecting year-end sales in Mar’25 (vs. INR1.96t in Mar’25 and INR2.1t in Apr’24). Collections grew 12.6% YoY in Apr’25 vs. a growth of 9.9% YoY in Mar’25 and 9.4% in FY25. The increase in Apr’25 GST collections YoY is mainly led by higher IGST collections (Exhibit 1).

* In Apr’25, CGST collections amounted to INR486.3b (up 10.9% YoY in Apr’25 vs. 14.1% YoY in Apr’24) and SGST collections stood at INR593.7b (up 10.9% YoY in Apr’25 vs. 12.9% YoY in Apr’24). The IGST collections amounted to INR1152.6b (up 15.7% YoY in Apr’25 vs. 11.7% YoY in Apr’24; Exhibit 2).

* Higher receipts from GST collected on imports and anti-evasion measures taken by authorities led to a rise in GST collections in Apr’25. GST collected on domestic activities grew 10.7% in Apr’25 vs. 13.4% in Apr’24. At the same time, GST collected on imports grew 21% YoY to INR469.1b in Apr’25 vs. a growth of 8.2% YoY in Apr’24. GST collected on domestic transactions constitutes 81% of the total GST receipts in Apr’25 vs. 82% in Apr’24 and 76.4% in FY25 (Exhibit 3).

* For FY26, the GoI has budgeted a growth of 11%, implying GST receipts of INR24.5t or monthly receipts of INR2.0t (Exhibit 4). We believe the FY26BE target is achievable. However, one must not get carried away by a new record-high monthly collection because GST collections in April are usually the highest in a fiscal year. We believe that this number will moderate in the coming months; however, we can comfortably achieve the FY26 budgeted GST collection target (average monthly receipts of INR2t).

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