April consistently records the highest GST collection in India due to the year-end closing of accounts and increased financial activity, with April 2025 reaching a record high of ₹2.37 lakh crore. Other high-collection months include October (often linked to festive season spending) and March.
India's Goods and Services Tax (GST) system has seen consistent growth in revenue collection, with the government crossing the ₹1.6 lakh crore mark per month. The highest-ever GST collection was recorded in April 2024 at ₹2.10 lakh crore, showcasing a strong compliance framework and economic recovery.
All major components—CGST, SGST and IGST—recorded growth during this period. India's GST system had earlier achieved a major milestone in 2024–25, recording its highest-ever gross collection of Rs 22.08 lakh crore, marking a 9.4 per cent increase over the previous year.
Gross GST revenue hit an all-time high of Rs 22.08 lakh crore during the 2024-25 financial year, doubling from Rs 11.37 lakh crore in FY21 over a five-year period.
April GST figures are a seasonal quirk, boosted by the year-end push, and not a barometer of steady consumption growth, as collections normalise the following month. This, along with declining GST buoyancy and slower net revenue growth, indicates a less-than-encouraging trend.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
According to government reports, while over 7 crore people file tax returns, only a fraction of them actually pay taxes because many fall below the taxable income threshold or use deductions to reduce liability.
Australia's tax rate is the fourth lowest of the 32 OECD countries which have a VAT or GST and is around half the unweighted OECD average rate of 19.2 per cent. Hungary has the highest tax rate at 27 per cent, while Canada has the lowest tax rate at 5 per cent.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
Types of GST in India
CGST (Central Goods and Services Tax) SGST (State Goods and Services. IGST (Integrated Goods and Services Tax) UTGST (Union Territory Goods and Services Tax)
Vijay Kelkar, as the Chairman of the Finance Commission and Kelkar Corporation, played a key role in the improvement of the GST regime. Former prime minister Atal Bihari Vajpayee is credited with founding GST in India and is often referred to as the 'Father of GST in India'.
Maharashtra has consistently been the highest taxpayer state in India, largely due to its status as the financial hub of the country. Cities like Mumbai and Pune contribute significantly to the state's tax revenues, driven by industries such as banking, technology, and manufacturing.
GST Rate and Slab Changes in September 2025
Significant changes have been implemented after the 56th GST Council meeting lowering the price of necessary goods, decreasing insurance premiums, and shift high-consumption goods into lower tax brackets. GST rate cuts on 200 items happened from 22nd September 2025.
The Government: A Boost in Revenue
From a government standpoint, GST has been a resounding success in terms of revenue generation and increase in tax base. The number of Taxpayers is increasing from year to year and the same thing can be said about the collection of GST.
According to the federal government, the maximum annual amount an individual may receive from July 2025 to June 2026 is $533, while a married or common-law couple could see up to $698 combined. The payment amounts are recalculated every July based on how much a family or individual earned in the previous tax year.
By this update, taxpayers will not be able to file GST returns after three years from the due date of such return. The CBIC notified us of this change effective 1st October 2023, and the GSTN has now brought this validation live on the official GST portal starting from July 2025.
How to Avoid GST on Overseas Purchases Legally
Countries with no income tax include Anguilla, Bahamas, Bahrain, Bermuda, British Virgin Islands, Brunei, Cayman Islands, Kuwait, Maldives, Monaco, Oman, Qatar, Saint Kitts and Nevis, Turks and Caicos, United Arab Emirates and Vanuatu. Tax-free countries in Europe include Monaco, Liechtenstein, Cyprus, and San Marino.
Tax Rates and Deductions Comparison
In 2025, India's tax slabs range from 0% on income up to ₹4 lakh to 30% above ₹15 lakh under the new regime. The US has progressive tax brackets starting at 10% going up to 37%.
Under India's income tax laws, individuals below 60 years of age are not liable to pay tax if their annual income is less than ₹2.5 lakh under the old tax regime. The Union Budget 2025 has significantly increased the exemption.
Obtain a Tax Residency Certificate (TRC)
For instance, if you are a tax resident of the US, you can claim relief in India under the India-US DTAA subject to obtaining a Tax Residency Certificate (TRC) from the US revenue authorities, electronically filed declaration in Form 10F, etc.