Mint Quick Edit | India’s GST peak is reassuring

India’s goods and services tax (GST) revenue has beaten the previous record. In April, the first month of fiscal 2025-26, it hit a new peak of ₹2.37 trillion. This is nearly 13% higher than the previous record of ₹2.1 trillion reached exactly a year ago. 

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That the two peaks came in April suggests the role of some seasonal factor. Businesses, for instance, may be carrying out reconciliation exercises to see if due taxes for the past year have been paid and settling what may be outstanding. 

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The increase over the figure of April 2024 is a tad above the economy’s rate of expansion in nominal terms (i.e., without adjusting for inflation). This hints of a slightly better economic performance this year, though no definite conclusion can be drawn.

Given the global uncertainty that spiked last month, the GST mop-up could tentatively be taken as a reassuring sign. But then, the potential impact of trade turmoil on India’s GDP growth may take some time to show up. 

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If we maintain monthly GST collections above the ₹2 trillion level in the months ahead, it could count as good news. India is relatively insulated from the tariff shock that America seems bent on delivering, but we can’t expect to escape its effects.