Caste census inclusion enables targeted welfare for marginalised communities amid interstate political credit disputes.
The Union Cabinet approved caste enumeration in the upcoming census to produce data for targeted support to poor and marginalised groups; this administrative decision has prompted political dispute with the Tamil Nadu government claiming credit and the Union Minister rejecting such attribution. The Minister also denied central favouritism toward corporations, asserted that funds and grants including MGNREGA allocations have been provided to the state, and emphasised that GST is a consolidation of prior levies decided through a collective intergovernmental council.

Tax collection enforcement using AI and data analytics to strengthen GST and VAT compliance and improve return filing guidance.
The government directed tax officials to adopt Artificial Intelligence and data analytics to enhance transparency and detect tax evasion in GST and VAT administration. The mandate links technology-driven monitoring and analytics-led risk identification with a strengthened enforcement focus, while requiring proactive engagement with traders and timely guidance on return filings and tax procedures to meet elevated collection targets.

GST collection rise: Haryana advances to fourth rank among states after a notable monthly revenue increase.
The document reports a substantial increase in GST collection by Haryana for April 2025, raising the State to fourth position among states by monthly GST mop-up; total GST receipts were Rs 14,057 crore for April 2025, with SGST of Rs 2,492.43 crore representing a 15.70% increase over April 2024, and the improvement is attributed to enhanced tax compliance and technology-driven tax administration.

Rupee volatility driven by foreign inflows and strong domestic data prompts cautious outlook amid geopolitical risks.
The rupee showed marked intraday volatility-hitting a seven-month high before settling slightly lower-driven by sustained foreign fund inflows, reported dollar selling by foreign banks, robust GST collections and a stronger Manufacturing PMI; declines in crude prices and a softer US dollar aided sentiment, while analysts warned that regional geopolitical escalation and upcoming US data could quickly reverse gains and provided a near-term trading range for the currency.

Market relocation and traders welfare reforms proposed to decongest traditional markets and simplify GST compliance and licensing.
Relocate congested traditional retail markets to new sites to expand trading space and strengthen commerce; form a Traders Welfare Board to centralise grievance redressal; implement a trader-friendly administration with a contemplated GST amnesty to simplify tax compliance; invite stakeholder input for a concise industrial policy and enact procedural reforms including single-window clearance, streamlined licensing, and other ease-of-doing-business measures.

GST collection record boosts market confidence amid sustained foreign institutional inflows and optimism over a potential trade deal.
Equity benchmarks rose on optimism from potential bilateral trade progress and persistent foreign institutional inflows, tempered by intraday volatility and sectoral rotation. A record Goods and Services Tax (GST) collection was cited as strengthening market confidence and government claims of economic resilience, while net FII purchases provided liquidity support. Manufacturing PMI improvements and global market trends further influenced selective gains across banking, IT and commodities, with midcap and smallcap segments lagging.

Currency movement: rupee pares gains despite foreign inflows, remaining sensitive to geopolitical risks and US macro data.
The rupee showed intraday strength then pared gains, settling marginally higher as foreign fund inflows and strong domestic indicators-notably GST collections and an improved manufacturing PMI-supported the currency, while markets remained sensitive to geopolitical risks and US macro releases; contemporaneous influences included dollar index weakness, lower crude prices, equity gains and foreign institutional buying.

Market sentiment lifts benchmark on FII inflows and trade optimism, supported by strong GST and manufacturing signals.
Sensex closed higher driven by foreign institutional inflows and hopes of an India-US trade deal, amid high GST collections and stronger manufacturing PMI; selective buying in banking and IT stocks and company-specific earnings and forecasts produced notable sectoral gains while broader markets remained cautious after intra-day volatility.

India US trade deal hopes and sustained foreign investment fuel equity rally amid strong GST receipts and easing oil prices.
Equity benchmarks rose on investor optimism from a potential India US trade agreement and ongoing foreign institutional investor inflows; sustained FII buying, driven by dollar weakness and favourable macro trends, plus strong corporate earnings, lifted major indices. Record-high Goods and Services Tax receipts signalled economic resilience and cooperative federalism, while falling crude prices and positive global market cues further supported the rally.

Currency movement: rupee appreciation driven by foreign inflows and strong GST data, but geopolitical risks may reverse gains.
Rupee appreciation was driven by sustained foreign fund inflows and strong Goods and Services Tax collections, which together supported domestic equities and strengthened the currency. However, analysts warned that regional geopolitical tensions and external factors such as the dollar index and oil prices could quickly reverse gains and reintroduce volatility into the forex market.

De-escalation diplomacy urged to reduce tensions and secure cross-border cooperation following a major terror attack.
The United States urged India and Pakistan to de-escalate tensions after the Pahalgam terror attack and to cooperate on investigations; Indian authorities pledged vigorous counterterrorism action and the NIA reported a detained suspect could reveal ongoing and future terror plans. Concurrently, a high court ordered removal of allegedly offensive social media content in a contempt proceeding, GST collections and exports reached record highs, and political contention grew over a proposed caste census.

Goods and Services Tax collections signal economic resilience and strengthened cooperative federalism after higher domestic and import receipts.
Record aggregate receipts under the Goods and Services Tax system were reported for April, driven by higher domestic transaction GST and import-related GST; after a notable increase in refunds issuance, net and post-refund collections rose year-on-year, with separate reporting of central, state, integrated GST and cess components.

HSN code reporting: Third phase mandate requires enhanced table 12 and table 13 reporting for GSTR 1 returns from May.
From the May return period of 2025, Phase Three on the GST Portal will make enhanced HSN Code reporting in table 12 of GSTR-1/1A mandatory according to Aggregate Annual Turnover criteria, and will also mandate completion of the documents list in table 13; taxpayers must update filings per the portal advisory.

GST revenue growth signals stronger economic activity and higher net collections after increased refunds and year end reconciliations.
GST receipts rose year on year in April due to stronger domestic transactions, higher import duties and year end reconciliations; refund disbursements also increased, affecting gross versus net collections, with central, state, integrated GST and cess components reported separately and advisers linking the rise to economic activity and accelerated refund processing.

GST revenue: gross Rs. 2,36,716 crore and net Rs. 2,09,376 crore in April 2025, provisional figures.
Total gross GST receipts for April 2025 were Rs. 2,36,716 crore (12.6% growth) and total net GST receipts were Rs. 2,09,376 crore (9.1% growth). Gross domestic revenue was Rs. 1,89,803 crore and gross import revenue Rs. 46,913 crore. Total refunds rose to Rs. 27,341 crore, producing net domestic revenue of Rs. 1,76,418 crore and net customs revenue of Rs. 32,958 crore. Post-settlement SGST figures reflect an ad-hoc Rs. 23,000 crore recovery from IGST balances, which suppresses reported settlement growth.

Goods and Services Tax receipts rise to highest level, driven by domestic and import revenue with higher refunds.
Goods and Services Tax receipts rose to an all time high in April, with year on year growth in gross collections driven by increases in domestic transaction revenue and stronger growth in import related revenue; refunds rose substantially and, after adjustment, net GST collections nevertheless recorded positive year on year growth.

Licence fee hikes drive claimed revenue spike while traders warn of business closures without fee relief.
Tripura's excise revenue from liquor has increased markedly, with the Excise Department attributing growth to higher consumption and enforcement, while IMFL shop owners contend the rise is driven mainly by substantial hikes in annual licence fees since 2018 that have made retail operations difficult and led to some closures.

Cess sharing threatened as central government retains petrol-diesel cess revenue, reducing states' fiscal share and autonomy.
The central government imposed and retained a cess on petrol and diesel and raised central excise duty, collecting substantial receipts from petroleum taxes and various cesses and surcharges which, it is alleged, have not been shared with states; these untransferred and unspent cesses, together with revenue forgone due to central tax concessions, are said to have reduced states' share of the divisible fiscal pool and constrained their fiscal autonomy, undermining cooperative federalism.

Conditional central funding restricted by onerous land and subsidy terms, prompting the state to return grants and self fund the project.
The state rejected conditional central funding for a medical device park because the offer required transferring valuable land at nominal rates, providing long term subsidised utilities and services, and granting substantial GST rebates-measures the government judged would impose significant fiscal burdens and undermine state revenue-so it returned received central funds and chose to proceed with the project using state resources to retain control and protect public finances.

GST on UPI transactions clarified: no GST applies because MDR on P2M UPI was removed and no proposal exists.
Claims that GST will be levied on UPI transactions are unfounded; no such proposal exists. GST applies to charges like the Merchant Discount Rate (MDR), and the CBDT removed MDR for Person to Merchant UPI transactions effective January 2020. Because no MDR is currently charged on UPI transactions, GST is not applicable. The Government supports UPI through an Incentive Scheme for low value P2M transactions, with disclosed allocations confirming ongoing policy support.