Shreyansh Singh, an IIT Kanpur alumnus, has eight years of experience in the finance industry. He has spent 5 years at American Express developing mid to long-term strategies for multiple markets including US, Europe and India. Shreyansh currently leads Growth and Strategy initiatives at Pice.
13 Nov 25
6 mins
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GST Collection in India: All about GST revenue so far
India recorded its highest-ever GST collection of ₹2.37 lakh crore in April 2025.
A 9.4% annual rise in GST revenue shows strong economic and tax compliance growth.
E-invoicing and AI tools have improved GST transparency and reduced tax evasion.
Manufacturing, e-commerce, and logistics sectors drive India’s GST performance.
Consistent GST growth signals healthy consumption and expanding formal markets.
Did you know that India collected ₹2.37 lakh crore in GST revenue in April 2025 alone? What does this rising figure say about the country’s economic health and tax compliance? The GST collection in India has become a key metric for assessing business activity, consumer demand and policy effectiveness.
This article will provide you with information regarding the recent trends in GST revenue collection. The article will also explore what drives these collections and understand their broader impact on India’s economy.
What is GST Collection in India?
The Goods and Services Tax in India was introduced in 2017. GST is primarily of 3 types: Central GST, State GST and Integrated GST. The central and state governments collect this indirect tax on any goods and services. The GST Council is responsible for making recommendations regarding GST changes in India.
The table below presents the GST collection in India since its introduction in 2017:
Year
Revenue Collection from GST (Rs. In Crores)
FY 2017-18
7.19
FY 2018-19
11.77
FY 2019-20
12.22
FY 2020-21
11.36
FY 2021-22
14.76
FY 2022-23
18.10
FY 2023-24
20.18
Contribution of Different Business Types to GST Revenue
There are several kinds of businesses in India, and they specifically contribute a percentage to GST collection in India by making tax payments under the GST network. Current statistics show that the collection of GST revenue from different types of businesses is as follows:
The Indian government collected a record ₹2.37 lakh crore in one month of April 2025. This was the highest ever collected GST revenue in one month since its introduction.
In the fiscal year 2024-2025, the total GST revenue was around ₹22.08 lakh crore, which was an increase from the last financial year of 2023-2024. The markup of 9.4% shows how the GST regime has increased the tax revenue collection of India.
Monthly Trends of GST Collection in India 2024-2025
The table below presents the monthly trend of GST collection in India along with its corresponding primary observation:
Months
Monthly Revenue (₹ Crore)
YoY Growth (%)
Primary Observation
June 2025
₹1,85,000 crore
~6.2%
Imports witnessed notable growth, with refund claims rising sharply and local consumption remaining firm
May 2025
₹2,01,050 crore
~16.4%
Monthly GST inflows crossed ₹2 lakh crore regularly, supported by strong import duties and consistent domestic transactions
April 2025
₹2,36,716 crore
~12.6%
Healthy consumer demand, active inter-state commerce and quicker refund processes are observed
March 2025
₹1,96,000+ crore
~9.9%
Reforms in GST management and a broader taxpayer base
February 2025
₹1,83,000+ crore
~10.2%
GST adaptability and compliance
January 2025
₹1,95,506 crore
~12%
Stricter enforcement of tax regulations as compared to FY 2024
December 2024
₹1,76,857 crore
~8%
Filing surges at the fiscal year-end, along with heightened trade activity
November 2024
₹1,82,269 crore
~10%
Sales during festival time boosted GST collection
October 2024
₹1,87,346 crore
~9%
Sales during festival time boosted GST collection
September 2024
₹1,73,240 crore
~6%
Stable revenue from service sectors and outbound trade
August 2024
₹1,75,000 crore
~7%
Upward revenue movement in the manufacturing domain
July 2024
₹1,59,000 crore
~5%
Impact of Budget 2024
June 2024
₹1,74,000 crore
~6%
Increase in ITC claims and tax compliance
May 2024
₹1,72,739 crore
~4%
Slowdowns due to seasonal factors led to fewer transactions
April 2024
₹2,10,267 crore
~12%
Highest-ever GST collection
March 2024
₹1,78,484 crore
~9%
Increased transactions due to ending fiscal year
February 2024
₹1,68,337 crore
~6%
Stable collections
January 2024
₹1,72,129 crore
~6%
Steady revenue in comparison with last month
Factors Affecting GST Collection
The 4 major factors that impact GST collection in India are as follows:
1. Economic Growth
India’s GDP growth in the first quarter of 2025 has led to higher tax collection. This growth in GDP is the result of higher consumer demand and activity in the formal sector.
2. Evasion Control and Tax Compliance
The mandate for e-invoicing for businesses with a turnover of more than ₹5 crore, effective from January 2025, has led to the prevention of tax evasion. This has also led to a reduction in fake invoice reporting.
3. Rate and Policy Changes
The changes in GST slab rates have led to higher tax collection. This anticipated change may already be driving better compliance among businesses.
4. Industry Performance
The activity in several sectors is driving higher collection. These sectors include manufacturing (auto, cement, steel), logistics and warehousing, and digital services and e-commerce.
The Indian government has also taken certain measures that have boosted the collection of GST. These measures are as follows:
E-invoicing mandate
GST return flagging with the use of Artificial Intelligence
GST enforcement dashboards for the state-level
Conclusion
The government tracks the GST collection in India each month to assess economic momentum in the country. Keeping a record of this also improves tax planning. By analysing these collections, government tax authorities are able to identify compliance trends.
They are also able to evaluate policy outcomes and make informed policy decisions. As the Indian economy grows and digital tax systems evolve, GST collection will continue to play a vital role in strengthening India’s revenue framework.
💡If you want to streamline your payment and make GST payments via credit, debit card or UPI, consider using the PICE App. Explore the PICE App today and take your business to new heights.
FAQs
What is the meaning of GST collection in India?
GST collection in India refers to the total tax revenue earned through the Goods and Services Tax imposed on the supply of goods and services. The collection includes CGST, SGST, and IGST, ensuring a fair division between the Centre and States. It reflects India’s economic activity, compliance level, and consumption trends. Higher GST collections generally signal a healthy and expanding economy.
How much GST was collected in India in April 2025?
In April 2025, India achieved its highest-ever GST collection of ₹2.37 lakh crore. This record-breaking number highlights strong consumer demand, rising imports, and better tax compliance. It also shows the positive impact of digital reforms like e-invoicing and AI-based monitoring, which have curbed evasion and improved transparency in the GST system.
What are the main factors that affect GST collection in India?
The main factors influencing GST collection include economic growth, tax compliance, policy changes, and industry performance. Strong GDP growth, e-invoicing mandates, and AI-led enforcement have increased tax efficiency. Additionally, booming sectors such as manufacturing, logistics, and e-commerce contribute significantly to India’s growing GST revenue base.
Why is GST collection important for India’s economy?
GST collection serves as a barometer of economic health, showing how much business activity and consumer spending are happening in the country. It provides steady revenue for the government to fund infrastructure, welfare, and development projects. Consistent GST growth also promotes fiscal stability, supports Make in India, and strengthens digital governance.
Which types of businesses contribute the most to GST revenue?
The majority of GST revenue comes from Public Limited Companies (34.83%) and Private Limited Companies (27.94%), followed by Proprietorships (13.28%) and Public Sector Undertakings (9.64%). This distribution shows that corporate and manufacturing sectors are major contributors to India’s tax ecosystem, reflecting the formalisation and maturity of the economy under GST.
Shreyansh Singh, an IIT Kanpur alumnus, has eight years of experience in the finance industry. He has spent 5 years at American Express developing mid to long-term strategies for multiple markets including US, Europe and India. Shreyansh currently leads Growth and Strategy initiatives at Pice.
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