The underlying revenue growth was closer to 9% after excluding a one-time ₹10,000 crore spectrum-related payment in May 2025 that inflated the base, officials said.
Also Read: India industrial output grows 4.9% in April as new IIP series shows manufacturing-led recovery
A key driver of the growth was the rise in imports driven by raw materials and intermediates. Integrated GST surged 19.1% to ₹59,654 crore, on the back of electronic components, copper inputs and lithium-ion battery imports.
India’s merchandise imports for April were $71.9 billion, up 10% against the same period last year.
“Notably, growth in import-led revenues continues to outpace domestic transactions, which could indicate some softness in consumption-possibly reflecting a moderation in discretionary spending amid ongoing geopolitical uncertainties,” said Pratik Jain, partner, Price Waterhouse & Co.
Abhishek Jain, indirect tax head & partner at KPMG attributed the rise in GST on imports to rupee depreciation. “Import GST has recorded a near 20% growth, which may also be attributed to rupee depreciation,” he said, adding that adjusted for the one-time telecom payment, domestic collections reflect a moderate growth in line with economic conditions.
Also Read: India meets FY26 fiscal deficit goal at 4.4% of GDP despite revenue and global pressures
Government officials added that the high import numbers reflects confidence among businesses in sustained domestic demand conditions and shows India’s industrial order pipeline remains healthy.
“Imports of raw materials are a leading indicator of demand for manufacturing activity,” officials said.
Gross Central GST (CGST) collection from domestic transactions during the reported month was ₹37,397 crore and state GST (SGST) was ₹45,143 crore. Net collections came in at ₹1.67 lakh crore, up 3.3% year-on-year with refunds witnessing a growth of 2.6% at ₹27,281 crore.
Officials, however, played down slowdown in domestic demand adding that the taxable supply data for both goods and services reflected healthy double digit growth.