India's GST Collection and Economic Indicators

Published on May 05, 2025, this report outlines India's Goods and Services Tax (GST) collection trends since the implementation of the indirect taxation framework in 2017, highlighting record highs in April due to year-end tax commitments by businesses.

GST Collection Details

• Gross GST Collected: ₹2.37 lakh crore, showing a 12.6% increase from the previous April.
• Post-Refund Collection: Central government netted over ₹2.09 lakh crore, a 9.1% increase from last year.
• Compliance and Refunds: An 86% rise in refunds to exporters, enhancing compliance, particularly vital for small businesses. This trend is supported by a high fintech adoption rate of 87%.

Economic Factors and Implications

• Fintech Impact: High fintech adoption has integrated more MSMEs into the formal banking system, improving tax compliance and regulatory supervision.
• Import Revenue Growth: A 20.8% increase in GST revenue from imports.
• HSBC India Manufacturing PMI: Reached a 10-month high with a rise from 58.1 in March to 58.2 in April, indicating increased international demand.

Global Trade Dynamics

• International Orders: Orders from abroad reached a 14-year high, driven by demand from Africa, Asia, Europe, West Asia, and the Americas.
• US Tariff Pause: Businesses expedited orders before the end of the U.S. 90-day tariff pause on July 9.
• Supply Chain Realignment: India's potential gain from U.S. tariffs on China, with Apple planning to source most iPhones for the U.S. from India.

Future Outlook

• Manufacturing Growth: India’s manufacturing sector saw a minimal growth of 4% in the last fiscal year.
• Strategic Growth Approaches: Emphasizing boosting domestic consumption and negotiating favorable trade concessions to sustain growth.