February Sees 8.1% Rise in GST Collections, Reaching Over ₹1.83 Lakh Crore

In February 2026, India's GST collections rose by 8.1%, exceeding ₹1.83 lakh crore, fueled by increased import revenues and domestic sales. Despite some states reporting negative growth, experts highlight a robust consumption trend and structural stability in the tax ecosystem. This article delves into the implications of these figures and the ongoing reforms shaping India's economic landscape.

By Narendra Chaudhary Mar 1, 2026, 17:54 IST

Significant Growth in GST Collections

New Delhi, Mar 1: The gross Goods and Services Tax (GST) collection for February has surged by 8.1%, surpassing ₹1.83 lakh crore, driven by increased revenues from imports and a boost in domestic sales.

The gross domestic revenue saw a rise of 5.3%, amounting to approximately ₹1.36 lakh crore, while gross revenue from imports jumped by 17.2% to ₹47,837 crore. Additionally, total refunds increased by 10.2%, totaling ₹22,595 crore.

The net GST collection reached over ₹1.61 lakh crore, marking a year-on-year increase of 7.9%.

However, net cess revenue fell to ₹5,063 crore, a significant drop from ₹13,481 crore recorded in February of the previous year. As of September 2025, GST rates on around 375 items were reduced, making various goods more affordable.

Furthermore, the previous four tax slabs of 5%, 12%, 18%, and 28% have been consolidated into two slabs of 5% and 18%, with a maximum rate of 40% applicable to select ultra-luxury items and tobacco products.

Initially, GST collections experienced a decline following the implementation of tax cuts, with revenues dropping to ₹1.70 lakh crore in November. However, collections rebounded to ₹1.74 lakh crore in December and further increased to ₹1.93 lakh crore in January.

MS Mani, a partner at Deloitte India, noted that the GST collection figures indicate a rise in consumption that has effectively offset the impact of rate reductions.

Despite this, the negative growth reported by key states such as Tamil Nadu (-6%), Madhya Pradesh (-8%), and Rajasthan (-1%), along with single-digit growth below the national average in states like West Bengal (1%), Haryana (2%), Uttar Pradesh (5%), and Maharashtra (6%), raises concerns for state officials and policymakers.

Saurabh Agarwal, a tax partner at EY India, emphasized that this performance underscores the robustness of India's consumption sector.

As structural reforms take effect, these trends suggest a developing tax ecosystem and a confident domestic market, paving the way for sustained economic growth.

Pratik Jain, a partner at Price Waterhouse & Co LLP, remarked that the data indicates GST has entered a phase of stable and predictable growth, which is promising.

Ikesh Nagpal, lead of indirect tax at AKM Global, mentioned that February 2026 GST collections reached ₹1.84 lakh crore, reflecting a seasonal adjustment from January's peak of ₹1.93 lakh crore, which was influenced by the inclusion of quarterly returns from October to December.

Manoj Mishra, partner and leader of tax controversy management at Grant Thornton Bharat, stated that with cumulative collections hitting ₹20.27 lakh crore, an 8.3% increase this year, the figures suggest that GST revenues are stable even on a high base, indicating structural stability rather than temporary fluctuations.