GST collections hit record ₹2.43 lakh crore in April, up 8.7% YoY; import-led surge masks weak domestic growth

India’s Goods and Services Tax (GST) collections touched a record high in April 2026, signalling resilience in economic activity despite global uncertainties. Gross GST revenue rose 8.7% year-on-year to ₹2,42,702 crore, compared with ₹2,23,265 crore in April 2025, according to official data released on May 1.

After accounting for refunds, net GST collections stood at ₹2,10,909 crore, marking a 7.3% increase from a year earlier. The April tally also represents a sharp sequential jump from ₹2,00,064 crore collected in March 2026, reinforcing the trend of strong tax buoyancy at the start of the financial year.

Import-driven growth outpaces domestic demand

A closer look at the data reveals a widening divergence between import-led and domestic GST growth. Gross GST revenue from imports surged 25.8% year-on-year to ₹57,580 crore, significantly outpacing the 4.3% rise in domestic collections, which stood at ₹1.85 lakh crore.

The gap becomes even more pronounced at the net level. Net GST revenue from imports jumped 42.9% to ₹45,784 crore, while net domestic revenue remained כמעט flat, inching up just 0.3% compared with the same period last year.

This imbalance suggests that while consumption linked to imports remains strong—possibly driven by higher inbound shipments and currency dynamics—underlying domestic demand growth may be moderating. The trend also indicates a greater contribution of external trade to tax revenues, even as export momentum shows signs of softening.

Refund spike and export signals

Refund disbursements during April rose sharply by 19.3% year-on-year to ₹31,793 crore, impacting net revenue growth. Within this, domestic refunds saw a steep 54.6% increase, while export-related refunds declined 14%.

The contrasting trend points to a potential slowdown in export activity, even as domestic compliance and refund processing efficiency improve. A drop in export refunds typically reflects lower outbound shipments or a shift in trade patterns.

The strong April performance follows a robust March, when gross GST collections crossed ₹2 lakh crore and net revenues rose 8.2% year-on-year to ₹1.78 lakh crore. For the full financial year 2025-26, gross GST collections grew 8.3% to ₹22.27 lakh crore, while net collections increased 7.1% to ₹19.34 lakh crore.

Key industrial states such as Maharashtra, Karnataka and Gujarat continued to be major contributors to GST revenues, underlining their role in driving India’s indirect tax base.