Net goods and services tax (GST) revenue, after adjusting for refunds, rose 7.3 per cent year-on-year to ₹2.11 trillion in April 2026, driven mainly by a sharp jump in import-linked collections, even as domestic revenue growth remained subdued, according to government data.
Gross GST collections touched a record ₹2.43 trillion, despite the sharp tax cuts announced in September 2025 to boost demand. GST collections usually spike in April, driven by a March-end push by companies to meet sales targets and close their books.
The divergence in trends was visible in the data. Net domestic revenue grew just 0.3 per cent to ₹1.65 trillion, despite gross domestic revenue of ₹1.85 lakh crore, as higher refunds offset gains. In contrast, net GST revenue from imports surged 42.9 per cent to ₹45,784 crore, with gross import revenue at ₹57,580 crore, driving the overall increase. Refunds rose 19.3 per cent to ₹31,793 crore, led by a 54.6 per cent jump in domestic refunds, while import-related refunds fell 14 per cent.
Abhishek Jain, Indirect Tax Head & Partner, KPMG, said April’s record collections reflect both cyclical and structural factors. “April 2026 GST collections at ₹2.43 trillion mark a historic high. While year-end adjustments invariably provide a cyclical boost, a record of this magnitude does reflect an underlying economic resilience that cannot be entirely discounted. The stable revenue buoyancy clearly reflects stronger tax administration, digital enforcement and widening of the tax base.”
Echoing this, Pratik Jain, Partner, Price Waterhouse & Co LLP, said the current trajectory is broadly in line with expectations but flagged an emerging imbalance. “Post GST 2.0, a steady 7–8 per cent monthly growth seems to be emerging as the norm, which is broadly in line with budget estimates. 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.”
Saurabh Agarwal, partner with EY, pointed to the need for policy recalibration even as headline numbers remain strong. “While the headline numbers are encouraging, the divergence between modest domestic GST growth and the significant uptick in import-linked collections warrants a strategic pivot. In an increasingly dynamic global landscape, we must critically re-examine our policy frameworks to further incentivise domestic manufacturing and ensure ‘Make in India’ keeps pace with global supply chain shifts,” he said. The government’s faster processing of refunds, he added, is supporting liquidity and industrial momentum. However, Agarwal cautioned that the current spike may not sustain.
“April’s record figures reflect the typical year-end push by businesses and tax authorities, and collections are likely to stabilise in the coming months, with a sequential dip expected as the new fiscal year progresses.”
For FY27, the Centre has set a GST revenue target of ₹10.2 trillion, slightly lower than the ₹10.46 trillion estimated for FY26.
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