India’s gross Goods and Services Tax (GST) collections registered a modest year-on-year growth of 2.95% in February, reaching ₹1.88 lakh crore, according to official government data. The slower pace of growth, compared to previous months, was largely attributed to seasonal trends, higher refund payouts, and a high base effect, following January’s record-breaking collections.

Key Highlights

• February GST collections rose 3% to ₹1.88 lakh crore, reflecting seasonal moderation and higher refunds.
• Net GST revenue grew nearly 8%, signalling stable economic momentum despite slower monthly growth.

After adjusting for refunds, net GST revenue stood at ₹1.61 lakh crore, marking a 7.9% increase over the same period last year. During the month, refunds surged 10.2% year-on-year to ₹22,595 crore, contributing to the lower net growth rate. Excluding compensation cess, GST collections grew at a healthier 8.1% year-on-year, amounting to ₹1.83 lakh crore, indicating steady domestic consumption and resilient economic activity.

On a month-on-month basis, collections declined 5.8% from January’s historic high of ₹1.99 lakh crore, which had benefited from quarterly return filings and year-end adjustments. Analysts believe the February numbers reflect normalisation following exceptional January inflows, alongside the impact of recent rate rationalisation measures implemented by the GST Council.

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Despite the moderation, tax experts remain optimistic, noting that GST revenues have consistently remained above ₹1.6 lakh crore for several months, signalling robust compliance and formalisation of the economy. Improved digital monitoring, enhanced enforcement measures, and widening of the tax base have contributed to stronger revenue mobilisation.

Going forward, economists expect GST collections to maintain a stable growth trajectory, supported by steady consumption demand, improving business sentiment, and continued focus on tax compliance. The sustained performance is likely to provide fiscal support for government spending and infrastructure investments, aiding broader economic growth.