April GST collection up by 12.6%

Indian Government’s Goods and Services Tax (GST) collection in April increased year-on- year by 12.6% to Rs 2.4 lakh crore. Net GST collection, after deducting refunds, increased year-on-year by 9.1% to Rs 2.09 lakh crore.

A robust GST collection indicates to some economic strength. GST collection also increased because of increased formalization of the economy with more businesses coming under the GST net.

Higher GST collection indicates to some economic strength

A higher GST collection may also indicate to strengthening of consumption in the Indian economy. Consumption makes up the biggest chunk of India’s GDP. According to World Bank data, consumption makes up for more than 60% of India’s GDP. Slowing down of consumption, especially in rural areas, was a challenge that Indian economy faced in the Covid and post-Covid period.