GST Collections Rise 8.1% To ₹1.83 Lakh Crore In February

India’s gross Goods and Services Tax (GST) collections rose 8.1% year-on-year to over ₹1.83 lakh crore in February, supported by stronger import revenues and steady domestic sales.

The latest numbers come amid a broader rate rationalisation exercise and after the government discontinued the remaining GST compensation cess on select products earlier this month.

Net GST collections stood at more than ₹1.61 lakh crore, reflecting a 7.9% increase compared with the same month last year.

While the headline figure signals continued growth in consumption, the monthly data also points to regional differences.

What Drove February’s GST Growth?

The increase in collections was largely supported by import-related revenues, which climbed 17.2% to ₹47,837 crore. Gross domestic revenue, in comparison, rose 5.3% to around ₹1.36 lakh crore.

Despite the limited expansion of domestic demand, analysts have observed that increased import growth is reflective of instability in trade flows.

Total refunds during February were up 10.2% at ₹22,595 crore. After adjusting for refunds, the net GST collection crossed ₹1.61 lakh crore.

However, net cess revenue fell sharply to ₹5,063 crore from ₹13,481 crore in the same month a year earlier. The decline follows GST rate cuts on about 375 items from September 2025 and the merger of four tax slabs into two main rates of 5% and 18%, with a 40% levy kept for select ultra-luxury goods and tobacco products.

While the year-on-year numbers appear steady, the overall growth rate for February was lower than the 5.87% expansion recorded during the April-to-February period on a cumulative basis.

How Do The Latest Numbers Compare Sequentially?

On a month-on-month basis, collections showed moderation. February’s gross GST revenue declined 5.8% compared with January’s ₹1.99 lakh crore, which had marked the highest monthly collection after the September rate rationalisation.

January’s figure had also been supported by the inclusion of quarterly returns for the October–December period. By contrast, February reflected more typical monthly activity patterns.

GST collections fell to ₹1.70 lakh crore in November after the rate changes, but they rebounded to ₹1.74 lakh crore in December and increased to around ₹1.9 lakh crore in January. The latest data indicates that while revenues remain strong, the ~₹2 lakh crore monthly mark may take more time to emerge after the tax rationalisation.

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State-wise GST Data And What To Expect Next

Among the states, Madhya Pradesh reported an 8% decline, while Tamil Nadu saw collections fall 6%. Rajasthan posted a marginal drop of 1%. In terms of the larger states that recorded growth, West Bengal expanded 1%, Haryana 2%, Uttar Pradesh 5%, and Maharashtra 6%, all below the national average of 8%.

Such variations are likely to be watched closely, especially in states where consumption plays a significant role in revenue trends.

Tax experts have indicated that the numbers point more to stability than a fresh surge. Collections appear to be settling after the recent rate changes, though month-to-month comparisons remain influenced by seasonal factors and base effects.

However, the sequential moderation indicates that previous base variables and seasonal impacts still have an impact on month-to-month comparisons.

The upcoming months will reveal if GST revenues can sustainably reach the ₹2 lakh crore level after structural changes were implemented and the compensatory cess was lifted.

Sources:

The Hindu

Financial Express