Finance

Gross GST Collections Rise 3% in February, Growth Moderates

GST Collections Edge Up 3% in February as Indirect Tax Growth Softens

Soham Halder

India’s gross GST receipts rose 3% in February, reflecting moderated growth compared to previous months. The latest tax data suggests a steady but slower pace in indirect tax collections amid evolving economic conditions.

Indirect Tax Growth Moderates in Latest Fiscal Data

The gross goods and services tax (GST) collections reached Rs 1.88 lakh crore in February (January transactions). It marked a year-on-year growth of 2.95%, which reflects a moderation from the previous month’s collections of Rs 1.99 lakh crore. The GST collection excluding the cess component, grew by 8.1% (Y-o-Y) to Rs 1.83 lakh crore in the month, according to official data provided by the Ministry of Finance on Sunday (March 1, 2026).

What the 3% Increase Signals for Economic Activity

The net GST revenue (after refunds) grew by 7.9% to Rs 1.61 lakh crore as refunds surged by 10.2% to Rs 22,595 crore. The gross collection in February includes central GST receipts of Rs 37,473 crore, state GST receipts of Rs 45,900 crore, and Integrated GST (IGST) receipts of Rs 1 lakh crore. The gross domestic revenue rose 5.3% to Rs 1.35 lakh crore, while gross import revenue collection stood at Rs 47,837 crore, up 17.2%. Cess collection stood at Rs 5,063 crore in February (January transaction).

Revenue Trends and Implications for Fiscal Policy

While removed from most goods in September, the government discontinued remaining GST compensation cess on tobacco and other sin products with effect from February 1.

MS Mani, Partner, Deloitte India said the GST collection figures reflect that there has been a consumption uptick that has more than compensated for the rate reductions and in terms of absolute numbers, the collections which were inching towards Rs 2 lakh crore per month, the rate reductions have pulled it back and it will take some more time for the Rs 2 lakh crore mark to emerge.

Pratik Jain, Partner, Price Waterhouse & Co LLP, said: “Many consumption states have had relatively higher growth than others. The data indicates that GST has entered into a phase stable and predictable growth, which is encouraging to see. Higher growth on imports indicates buoyancy in cross border trade activities.”

The growth rate in GST collections in year-on-Year terms in February is lower than 5.87% growth seen in April to February period (including Cess).

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