Context:
India’s net goods and services tax (GST) receipts grew 9.1 per cent in April to hit a fresh monthly record of over ₹2.09 trillion, making a significant improvement over the mild 7.3 per cent uptick in revenues this March, despite a 40 per cent sequential surge in refunds.
Key Highlights
- Net GST revenue rose 9.1% YoY to ₹2.09 trillion in April 2025
- Gross GST collection surged 12.6% YoY to ₹2.37 trillion
- Domestic GST revenue increased 10.7%; import-related GST grew 20.8%
- Refunds surged 40% month-on-month, with export-related refunds up 86.1%
- Net economic activity-based GST for FY25 stood at ₹19.73 trillion vs ₹18.26 trillion in FY24
Drivers Behind the Growth
- March-end compliance and inventory liquidation by businesses boosted filings
- Exporters accelerated transactions ahead of expected US ‘Liberation Day’ tariff hikes
- Consistent high collections across all major producing and consuming states (11%–16% growth range)
Automobile Sector Performance
Passenger Vehicle Sales
- Domestic PV wholesales rose 4.4% YoY to ~3.53 lakh units in April
- SUV sales and rural demand remain the primary growth drivers
Digital Payments Trend
UPI Transactions
- UPI transaction value dipped 3% MoM to ₹23.9 trillion in April
- Decline likely due to seasonal post-fiscal slowdown in retail payments
