India's GST Revenue Hits ₹1.83 Lakh Crore in February, Up 8.1% YoY

India's Goods and Services Tax (GST) collections demonstrated robust growth in February 2026, with the gross revenue reaching an impressive ₹1.83 lakh crore. This figure represents an 8.1% year-on-year increase compared to the ₹1.69 lakh crore collected in February 2025, signaling a period of steady economic momentum for the nation. The total gross GST revenue for the current financial year (FY26), as of February 28, stood at ₹20.27 lakh crore, registering an 8.3% year-on-year growth. This consistent performance underscores the resilience of the Indian economy and improved tax compliance mechanisms. After accounting for refunds totaling ₹22,595 crore – which themselves saw a 10.2% year-on-year increase – the net GST revenue for February 2026 settled at ₹1.61 lakh crore. This net collection also reflects a healthy 7.9% growth over the corresponding month in the previous fiscal year. A closer examination of the components reveals key drivers behind this growth. Gross domestic revenue, derived from transactions within India, rose by 5.3% to ₹1.36 lakh crore in February. More significantly, gross import revenue experienced a substantial surge of 17.2%, climbing to ₹47,837 crore. This robust growth in import-linked revenues highlights sustained trade activity and higher Integrated GST (IGST) inflows. The domestic collection specifically comprised ₹37,473 crore in Central GST (CGST), ₹45,900 crore in State GST (SGST), and ₹52,399 crore in Integrated GST (IGST). While the year-on-year growth is positive, it's worth noting a sequential dip in gross collections compared to the previous month. Gross GST collection in January 2026 had reached ₹1.93 lakh crore, higher than February's ₹1.83 lakh crore. This slight decline from January to February was mainly attributed to higher revenues from imports during the earlier month. An important development impacting the revenue structure is the sharp decline in net cess revenue. It stood at ₹5,063 crore in February 2026, significantly lower than ₹13,481 crore collected in February last year. This reduction is a direct consequence of the discontinuation of the GST compensation cess regime from February 1, 2026, after tobacco, which was the only remaining commodity attracting it following GST rationalization in September 2025, was moved into a new tax regime. State-wise post-settlement GST revenues presented a mixed picture across the country. Industrialized states like Maharashtra, Karnataka, and Gujarat posted solid gains and were among the largest contributors to the tax kitty. Maharashtra, for instance, contributed ₹10,286 crore in pre-settlement collections. States such as Himachal Pradesh, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Tamil Nadu, and Sikkim also recorded positive GST revenue growth in their post-settlement SGST. Conversely, some smaller and resource-dependent states, including West Bengal, Jharkhand, Odisha, Chhattisgarh, Madhya Pradesh, Tripura, and Jammu and Kashmir, experienced contractions in their SGST revenue growth, with Jharkhand recording the steepest fall of 44%. Experts view these figures as a reflection of calibrated growth, improved compliance efficiency, and sustained formalization within the economy, rather than one-off volatility. MS Mani, a partner at Deloitte India, noted that the February figures suggest a consumption uptick that has more than compensated for recent GST rate reductions. He also indicated that while collections were inching towards ₹2 trillion per month, the rate reductions have pulled it back somewhat, and it will take some more time for the ₹2 trillion mark to emerge consistently. The government has consistently maintained that GST rate cuts, such as those announced in September 2025, would boost demand for goods and services and ultimately support higher tax collections over time. The robust GDP growth outlook, with forecasts for FY26 revised upwards to 7.6% and FY27 expected between 7% and 7.4%, provides a natural tailwind for tax revenues, although a portion of the nominal GST growth might also be attributable to price increases rather than solely volume expansion. Overall, the February 2026 GST collection data reinforces the narrative of a steadily growing Indian economy, with strong consumption and import activity supporting revenue generation despite some regional variations and the discontinuation of the compensation cess.

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