Table of Contents
It’s that time of the year again — when numbers begin to speak louder than forecasts. April 2025, the opening act of India’s financial year, delivered a robust GST collection of ₹2.36 lakh crore. A year ago, the figure stood at ₹2.10 lakh crore. That’s an increase of over ₹26,000 crore — or roughly 12.6% if you’re counting percentages. But what does it really mean?
For one, businesses are moving. Tax compliance is sticking. And consumption? It’s definitely not slowing down. From shop counters to shipping docks, the signals are pointing in the same direction — activity.
Zoom in, and the picture gets more layered. States like Maharashtra and Karnataka continue to bring in bulk, while the Northeast is throwing in surprises — Arunachal Pradesh clocked 66% growth. That’s not a typo. It’s a sign that the tax net is widening, not just deepening.
All of this isn’t just good for the exchequer. It’s good for momentum, for credibility, for the promise that this economy still has room to run. Let’s break it down.
Overview of April 2025 GST Collection
The April numbers came in stronger than expected. ₹2.36 lakh crore was collected under GST this month — a bump from ₹2.10 lakh crore last April. That’s around ₹26,000 crore more. Enough to be noticed. Enough to draw headlines. And it did.
Most of this came from domestic activity. That’s where the traction was. CGST collections rose to ₹48,634 crore. SGST wasn’t far behind, adding ₹59,372 crore to the total. IGST saw the biggest year-on-year leap, crossing ₹1.15 lakh crore — partly because of imports, but also because of better reporting at checkpoints. Cess remained largely stable.
The split between domestic and import revenue makes one thing clear: business within the country is ticking along. Import-based IGST added ₹45,754 crore this month. That’s strong. But the real momentum? It came from inside.
Here’s how the numbers look:
GST Revenue in April – Year-on-Year Comparison (₹ crore)
Tax Head | April 2024 (₹ Cr) |
April 2025 (₹ Cr) |
YoY Difference (₹ Cr) |
---|---|---|---|
CGST | 43,846 | 48,634 | +4,788 |
SGST | 53,538 | 59,372 | +5,834 |
IGST | 99,623 | 1,15,259 | +15,636 |
Cess | 13,260 | 13,451 | +191 |
Total | 2,10,267 | 2,36,716 | +26,449 |
Composition of GST (Out Of Total%)
The data doesn’t shout. It doesn’t need to. This kind of growth, in a foundational tax system like GST, shows maturity. Quietly, but steadily, collections are climbing. And that’s exactly what the economy needs right now.
Category-Wise Collection Analysis
GST isn’t one single tax — it’s a bundle. CGST goes to the Centre, SGST to the states, IGST handles inter-state and import transactions, and Cess sits on top for specific goods. When you break April’s ₹2.36 lakh crore down into these buckets, some patterns begin to show.
IGST brought in the biggest slice — ₹1,15,259 crore. Nearly half the total. That includes ₹45,754 crore from imports alone. IGST is always large, but this time, it’s noticeably higher than usual. It suggests strong inter-state trade and steady import volumes — both positive signs in the current global climate.
Then there’s SGST — ₹59,372 crore. And CGST — ₹48,634 crore. Both have climbed compared to April 2024, which is good. It tells us domestic supply chains are moving and local compliance is improving.
Cess came in at ₹13,451 crore. That’s mostly from sin goods — tobacco, coal, aerated drinks, and so on. Cess isn’t always headline-worthy, but it plays its part. Its stability is a quiet signal that discretionary spending hasn’t dropped off.
The balance among the four pillars of GST has largely held — but the weight is shifting toward IGST, suggesting that interstate and global trade are starting the year stronger than expected.
Refund Trends and Impact on Net Revenue
Refunds don’t get much airtime, but in April, they took up space. Big space. Over ₹27,000 crore was issued back to taxpayers last month. That’s up from just over ₹18,000 crore in April 2024. Do the math and you’re looking at a near 50% jump.
Now, here’s where it gets interesting. A major part of that spike? Export refunds through ICEGATE. Just this April, ₹11,393 crore was refunded through that channel alone. That’s almost twice what it was a year ago. Why? Better backend, quicker clearances, maybe fewer objections. Possibly all three.
Of course, once you cut that from the gross, you’re left with what really matters — net revenue. ₹2,09,375 crore. That’s still ₹17,000 crore more than last year’s net figure, even with the extra refunds going out. So, growth? Yes. Just a little more understated than the headline number suggests.
There’s a point worth making here. High refunds don’t mean leaks. They mean businesses are filing, systems are working, and dues are returning on time. In a country where delayed payments can choke MSMEs, that’s no small win.
State-Wise GST Performance Highlights
There’s always something to learn when you zoom into the states. The April 2025 GST collection figures aren’t just big at the national level — they reveal important shifts across India. Some expected. Others, not so much.
Start with Maharashtra. It stays on top. No surprises there. The state collected ₹41,645 crore in GST, more than any other. Karnataka followed with ₹17,815 crore, then Gujarat at ₹17,096 crore. Tamil Nadu and Uttar Pradesh completed the top five. These are your usual heavy hitters — large economies, busy supply chains, lots of transactions.
But it’s the smaller states that caught attention this time. Arunachal Pradesh posted a 66% jump in year-on-year GST collection. Yes, 66%. Meghalaya was close behind with a 50% spike. Sikkim went up 17%. These aren’t large revenue volumes, but the pace of growth matters. It shows the GST system is spreading, even in low-base geographies.
On the flip side, a few states slipped. Andhra Pradesh, for instance, saw a 3% drop. Mizoram’s collections were down 28%. These need watching — whether it’s a reporting lag, a genuine decline, or something structural.
And just like that, April gives us a deeper view: familiar leaders hold steady, but new states are showing life. Which, if you’re thinking long term, is exactly what a maturing GST system should look like.
Notable Trends in Settlement and Adjustments
GST isn’t just about what’s collected — it’s also about where the money eventually lands. That’s where settlements come in. The Centre collects part of the tax (CGST, IGST), the states collect theirs (SGST), but often the lines blur — especially with IGST. So, the system does internal accounting and adjusts the numbers.
In April 2025, ₹50,307 crore was settled by the Centre to the states and UTs. This includes ₹12,106 crore from CGST and ₹38,201 crore from IGST. That money gets added to the state coffers, giving them liquidity to fund their operations. Without this step, the raw collection numbers don’t mean much.
There’s more. The Centre also recovered ₹23,000 crore in IGST that had been pending since 2022–23 — an ad-hoc settlement. That’s not part of April’s regular flow, but it does give a one-time bump to the central side of the ledger. Essentially, it’s the system clearing its backlog.
This internal balancing act matters. It ensures no state is short-changed just because transactions cross borders. And by the look of it, April was a month of cleaning house — both in routine transfers and long-pending adjustments.
What the Numbers Indicate for the Indian Economy
So, what do these April 2025 GST collection numbers really say? Beyond the percentages, the charts, and the collections — what do they tell us about where the economy stands?
To start with, stability. A 12.6% rise in gross revenue, year on year, isn’t just solid — it’s steady. That kind of number doesn’t come from a flash in the pan. It comes from underlying demand, consistent consumption, and improved compliance. In other words, the economy isn’t stalling. It’s moving. Maybe not at breakneck speed, but certainly forward.
Refunds are another story. They’ve jumped nearly 50%. That would’ve sounded alarming a few years ago — but today, it’s a sign of maturity. Exporters are filing returns, systems are clearing them faster, and working capital isn’t stuck in red tape. For MSMEs, that matters more than a GDP forecast.
And the state numbers? The usual leaders are still leading, but the outliers are where the action is. The Northeast is no longer just a footnote in the GST narrative. It’s part of the curve. If that trend holds, we’re looking at a broader tax base, geographically and structurally.
Even the ₹23,000 crore IGST recovery — a cleanup job, really — is meaningful. It shows intent. Governments often delay hard internal fixes. This one didn’t. And that’s a win, even if it’s just accounting.
Put all that together, and April looks like more than just a good start. It feels like the GST engine, after years of tuning, is finally beginning to hum with some rhythm.
For MSMEs, CFOs, and Compliance Teams
April’s numbers send a clear signal: domestic demand is strong, refunds are moving faster, and compliance infrastructure is improving. If you’re in exports or inter-state trade, the smoother refund flow via ICEGATE and higher IGST settlements suggest it’s time to revisit your filing cycles, invoice accuracy, and refund claims strategy.
Manufacturing, logistics, and export-driven sectors likely contributed significantly to April’s IGST and refund surge — with exporters benefiting most from improved clearance timelines.
Conclusion
April’s GST numbers aren’t just a strong start to FY 2025–26 — they’re a message. Collections are up, compliance is holding, refunds are quicker, and settlements are cleaner. The system — often criticised for its teething issues — seems to be settling into its own.
Yes, there are still outliers, still pockets of underperformance, and still questions. But when ₹2.36 lakh crore rolls in without drama, and over ₹27,000 crore goes back out as timely refunds, that’s no small feat. If this momentum holds, both the Centre and states might just have a little more fiscal room — and a lot more confidence — going into the quarters ahead.
FAQs
How does April’s GST collection impact the central government's fiscal planning for the year?
Are GST collections typically higher in April compared to other months?
What role does e-invoicing play in improving GST compliance?
How do GST settlements affect state budgeting and expenditure?
What are the key sectors contributing the most to GST revenue in April 2025?
How does GST refund efficiency affect MSMEs?
Has GST evasion decreased in 2025 due to tech integration?
How do GST collections correlate with GDP growth?
How is GST revenue split between the Centre and states after settlement?
What challenges still exist in the GST collection system despite record highs?
A product manager with a writer's heart, Anirban leverages his 6 years of experience to empower MSMEs in the business and technology sectors. His time at Tata nexarc honed his skills in crafting informative content tailored to MSME needs. Whether wielding words for business or developing innovative products for both Tata Nexarc and MSMEs, his passion for clear communication and a deep understanding of their challenges shine through.