India’s Goods and Services Tax (GST) collection has surged to a record ₹2.43 lakh crore, fueled by a significant 25.8% increase in imports.
This increase in imports has led to a rise in GST revenue from import-related transactions, which totaled ₹57,580 crore. In comparison, last year’s GST collection for April was ₹2.23 lakh crore.
Despite these impressive figures, signs of softness in domestic demand have emerged. Domestic revenue increased by 4.3% year-on-year, reaching ₹1.85 lakh crore.
The overall refund process also saw enhancements, with total refunds issued increasing by 19.3%, amounting to ₹31,793 crore. Notably, domestic refunds rose by 54.6%, while export refunds decreased by 14%.
The current GST collection marks a substantial increase from April 2022 when it stood at just ₹1.67 lakh crore. The upward trend continued into April 2024, with collections reaching ₹2.10 lakh crore.
Observers note that while the import surge boosts government revenue, it may also reflect underlying issues with domestic consumption patterns.
