GST Collections Show Steady Growth in February, Reaching Rs 1.83 Lakh Crore
Goods and Services Tax (GST) revenues continued to demonstrate robust expansion in February, with collections hitting Rs 1.83 lakh crore, according to official data. This figure reflects resilient economic activity and enhanced compliance as the financial year approaches its conclusion. The latest numbers bring the total gross GST collections for FY26, up to February 28, to Rs 20.27 lakh crore, representing an 8.3% year-on-year increase.
Detailed Breakdown of GST Revenue Components
Refunds during February amounted to Rs 22,595 crore, up 10.2% compared to the same period last year. This resulted in a net GST revenue of Rs 1.61 lakh crore for the month. Notably, net cess revenue declined to Rs 5,063 crore from Rs 13,481 crore in February of the previous year.
Gross Domestic Revenue saw a 5.3% rise to Rs 1.36 lakh crore, while Gross Import Revenue increased by 17.2% to Rs 47,837 crore. This indicates stronger tax collections linked to trade activity, highlighting the positive impact of international commerce on fiscal health.
Expert Insights on Economic Trends and State Performance
MS Mani, Partner at Deloitte India, commented on the data, stating that it reflects improving consumption trends supported by broader macroeconomic strength. "The consumption increase that has led to an 8% plus increase in the monthly and annual collections is also supported by the strong GDP data and other macroeconomic indicators published recently," Mani said. He added that while collections were previously approaching the Rs 2 trillion monthly mark, rate rationalisation has moderated the pace, and "it will take some more time for the Rs 2 trillion mark to emerge."
State-wise, Maharashtra contributed the highest pre-settlement GST revenue at Rs 10,286 crore, followed by Karnataka and Gujarat. States showing positive post-settlement SGST growth included:
- Himachal Pradesh
- Chandigarh
- Uttarakhand
- Haryana
- Delhi
- Rajasthan
- Uttar Pradesh
- Bihar
- Maharashtra
- Karnataka
- Tamil Nadu
- Sikkim
- Arunachal Pradesh
Negative growth was recorded in West Bengal, Jharkhand, Odisha, Chhattisgarh, Madhya Pradesh, Tripura, and Jammu and Kashmir. Commenting on regional trends, Mani noted, "The negative growth reported by major states such as Tamil Nadu (-6%), MP (-8%), Rajasthan (-1%), and the single-digit growth below the national average of 8% reported by WB (1%), Haryana (2%), UP (5%), Maharashtra (6%) would be a matter of concern for the states and the policymakers."
Analysis of Fiscal Momentum and GST Architecture
Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat, emphasized that the collections signal stable fiscal momentum. "February's gross GST collections at INR 1.83 lakh crore, marking an 8.1% year-on-year increase, reaffirm the steady fiscal momentum as we approach the close of FY26," he said, adding that revenues are holding firm even on a high base.
Mishra pointed out that domestic revenues grew moderately while import-linked IGST showed stronger expansion, reflecting trade activity and improved compliance. "Equally important is the 10.2% rise in refunds, with net revenues still posting a healthy 7.9% increase. This indicates a maturing GST architecture that is balancing revenue strength with timely liquidity flows to businesses," he explained.
Abhishek Jain, Partner and Indirect Tax Head at KPMG, added, "An 8.1% rise in monthly GST collections post GST 2.0 rate rationalisation signals steady economic momentum and improved compliance. The growth reflects a combination of resilient consumption supported by GST rate rationalisation, formalisation of businesses, and better enforcement through technology-driven monitoring."
Overall, the GST revenue data for February underscores a positive trajectory for India's economy, with strong collections driven by consumption, trade, and compliance improvements. As the fiscal year ends, these figures provide a solid foundation for future economic planning and policy adjustments.
