Daijiworld Media Network – New Delhi
New Delhi, May 1: India’s Goods and Services Tax (GST) collections scaled a record high of Rs 2.43 lakh crore in April 2026, reflecting a steady rise in revenues. However, a deeper analysis indicates that the surge was largely driven by imports, while domestic demand showed relatively modest growth.
Net GST collections, after refunds, stood at Rs 2.11 lakh crore, marking a 7.3 per cent year-on-year increase. The gross collections rose 8.7 per cent compared to April last year, continuing an upward trend from Rs 1.67 lakh crore recorded in April 2022.
A significant contributor to the spike was GST on imports, which jumped 25.8 per cent to Rs 57,580 crore. Experts attribute this to elevated global prices, supply chain disruptions, and geopolitical tensions in West Asia, along with higher crude oil prices inflating import values.
In contrast, domestic GST collections grew at a slower pace of 4.3 per cent, reaching Rs 1.85 lakh crore. The gains were further offset by a sharp rise in refunds, which increased 19.3 per cent overall. Notably, domestic refunds surged by over 50 per cent, dampening net revenue growth from within the country.
Tax expert Vivek Jalan of Tax Connect Advisory Services noted that while overall collections remain robust, the growth pattern warrants closer scrutiny. He pointed out that a 42.9 per cent rise in net customs GST collections reflects higher import costs, while net domestic collections remained largely flat due to rising refunds under the inverted duty structure.
Policy and compliance-related changes also influenced April’s figures. Adjustments in input tax credit (ITC) mechanisms and advance payments linked to tax disputes contributed to the inflows.
Experts have raised concerns over increasing ITC accumulation and refund outflows, which add to business costs despite supporting overall collections. The issue is expected to come up for discussion in the upcoming GST Council meeting.
While the headline numbers indicate strong revenue performance, analysts caution that the underlying trend suggests dependence on external factors like imports, with domestic consumption showing signs of moderation.