Gross GST collection increased by 8.1% to over ₹1.83 lakh crore in February, led by higher growth in revenues from imports and improved domestic sales.
Gross domestic revenue rose 5.3% to about ₹1.36 lakh crore, while gross import revenue climbed 17.2% to ₹47,837 crore.
Total refunds were up 10.2% at ₹22,595 crore.
Total net Goods and Services Tax (GST) collection stood at over ₹1.61 lakh crore, up 7.9% year-on-year.
Net cess revenue was ₹5,063 crore, down from ₹13,481 crore in February last year. GST rates on about 375 items were slashed, making goods cheaper, effective September 2025. Also, four tax slabs of 5%, 12%, 18% and 28% were merged into two of 5% and 18%, with a highest 40% slab for a select few ultra luxury goods and tobacco products.
The GST collections had initially dipped in the first month of tax cut implementation, with revenues declining to ₹1.70 lakh crore in November. The collection rose to ₹1.74 lakh crore in December and further to ₹1.93 lakh crore in January.
Deloitte India Partner M.S. Mani said GST collection figures reflect the fact that there has been a consumption uptick that has more than compensated for the rate reductions.
Negative growth by major States
However, the negative growth reported by major States such as Tamil Nadu (-6%), Madhya Pradesh (-8%), and Rajasthan (-1%) , and the single digit growth below the national average of 8% reported by West Bengal (1%), Haryana (2%), Uttar Pradesh (5%), and Maharashtra (6%) would be a matter of concern for the States and policymakers, Mr. Mani said.
EY India tax partner Saurabh Agarwal said this performance reaffirms the strength of India’s consumption engine. As structural reforms continue to take hold, these trends highlight a maturing tax ecosystem and a confident domestic market, setting the stage for sustained and inclusive economic momentum.
Price Waterhouse & Co LLP partner Pratik Jain said data indicate that GST has entered a phase of stable and predictable growth, which is encouraging to see.
Ikesh Nagpal, lead-indirect tax, AKM Global, said, “February 2026 GST collections are ₹1.84 lakh crore, reflecting a seasonal moderation from January’s record ₹1.93 lakh crore, which had been boosted by the inclusion of October-December quarterly returns.” Manoj Mishra, partner and tax controversy management leader, Grant Thornton Bharat, said that with cumulative collections reaching ₹20.27 lakh crore, up 8.3% so far this year, the numbers indicate that GST revenues are holding firm even on a high base, reflecting structural stability rather than cyclical spikes.
