GST growth hits five-month high as collections touch Rs 1.84 lakh crore in February

GST collections at 5-month high

• February GST collections reach Rs 1.84 lakh crore, up 8.1%
• Domestic GST revenue rose 5.3 percent, imports up 17.2 percent
• State GST revenues show mixed but overall positive growth

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India’s goods and services tax (GST) collections rose to Rs 1.84 lakh crore in February, marking a five-month high growth of 8.1 percent year-on-year, signalling steady consumption momentum and resilient domestic economic activity even as global uncertainties persist.

The latest data released by the government on March 1 shows collections rebounding from January’s 6.2 percent growth, indicating improving compliance and stable demand conditions across sectors. Gross GST revenues stood at Rs 1.84 lakh crore compared with Rs 1.69 lakh crore in February last year.

A closer look at the numbers shows domestic revenues continuing to anchor collections. Gross domestic GST revenue rose 5.3 percent year-on-year to Rs 1.35 lakh crore. Net domestic revenue — after adjusting for refunds — grew 6.2 percent.

Import-related GST revenues grew at a faster pace, rising 17.2 percent annually, indicating stronger trade flows and possibly higher import values amid recovering global demand. Net customs GST collections increased 14.2 percent.

Refunds also rose during the month, with total refunds increasing 10.2 percent year-on-year to Rs 22,595 crore, reflecting faster processing.

State revenues show mixed trends

State-level data suggests uneven but broadly positive growth. Large industrial states such as Maharashtra, Karnataka and Gujarat registered steady increases in GST settlements, while some states witnessed moderation reflecting local demand variations. Post-settlement GST revenues for states collectively rose about 7 percent year-on-year in February.

Stable collections above the Rs 1.8 lakh crore mark suggest consumption demand remains intact even as growth normalises.

Indian economy expanded 7.8 percent in the third quarter compared with 8.4 percent growth witnessed in the second quarter of FY26. The Indian economy is expected to log 7.6 percent growth for the fiscal, indicating that growth may persist at current rates in the fourth quarter as well, as per new base data released by the government.