Gross Goods and Services Tax (GST) collection rose 8.1% year-on-year to over ₹1.83 lakh crore in February, supported by stronger import-linked revenues and improved domestic sales. Net GST collection stood at over ₹1.61 lakh crore, while total refunds also increased. The data indicates continued resilience in consumption despite recent rate rationalisation across several goods.
February GST Revenue Trends
Gross domestic revenue increased 5.3% to about ₹1.36 lakh crore. Gross import revenue rose sharply by 17.2% to ₹47,837 crore. Total refunds were up 10.2% at ₹22,595 crore. Net cess revenue stood at ₹5,063 crore, lower than the corresponding month last year.
Impact of GST Rate Rationalisation
GST rates on about 375 items were reduced from September 2025. The earlier four slabs of 5%, 12%, 18% and 28% were merged into two main slabs of 5% and 18%. A higher 40% slab was retained for a few ultra-luxury goods and tobacco products. Collections initially dipped after the tax cut, falling to ₹1.7 lakh crore in November, but later recovered to ₹1.74 lakh crore in December and ₹1.93 lakh crore in January.
Consumption and State-Wise Performance
The rise in collections suggests that consumption growth has partly offset the effect of lower tax rates. Higher import revenues also point to stronger trade activity. However, weak growth in several large States remains a concern. Tamil Nadu, Madhya Pradesh and Rajasthan reported negative growth, while West Bengal, Haryana, Uttar Pradesh and Maharashtra posted single-digit growth below the national average.
Exam Significance
The data is important for understanding GST buoyancy, the effect of tax rate changes on revenue, and the role of consumption in indirect tax collections. It also marks the fiscal importance of State-wise GST performance and refund trends.
Last Modified: April 28, 2026