The gross goods and services tax (GST) collections reached Rs 1.88 lakh crore in February (January transactions), marking a year-on-year growth of 2.95%, reflecting a moderation from the previous month’s collections of Rs 1.99 lakh crore. However, the GST collection excluding the cess component, grew by 8.1% (Y-o-Y) to Rs 1.83 lakh crore in the month, according to official data provided by the Ministry of Finance on Sunday.
The net GST revenue (after refunds) grew by 7.9% to Rs 1.61 lakh crore as refunds surged by 10.2% to Rs 22,595 crore.
The gross collection in February includes central GST receipts of Rs 37,473 crore, state GST receipts of Rs 45,900 crore, and Integrated GST (IGST) receipts of Rs 1 lakh crore. The gross domestic revenue rose 5.3% to Rs 1.35 lakh crore, while gross import revenue collection stood at Rs 47,837 crore, up 17.2%. Cess collection stood at Rs 5,063 crore in February (January transaction).
Post-Rate Cut Stability
While removed from most goods in September, the government discontinued remaining GST compensation cess on tobacco and other sin products with effect from February 1.
MS Mani, Partner, Deloitte India said the GST collection figures reflect that there has been a consumption uptick that has more than compensated for the rate reductions and in terms of absolute numbers, the collections which were inching towards Rs 2 lakh crore per month, the rate reductions have pulled it back and it will take some more time for the Rs 2 lakh crore mark to emerge.
Ikesh Nagpal, Lead-Indirect Tax, AKM Global, said this month’s collections reflect a seasonal moderation from January’s record Rs 1.93 lakh crore (excluding cess), which had been boosted by the inclusion of October-December quarterly returns.
Sequentially, the GST mop-up recorded a decline of 5.8% from the Rs 1.99 lakh crore collection in January, which was also the highest GST collection after the rate rationalisation in September. The government on September 3 announced GST rate cuts on 375 items, including essential items, electronics and automobiles, effective from September 22, the first day of Navratri.
Seasonal Moderation
Pratik Jain, Partner, Price Waterhouse & Co LLP, said: “Many consumption states have had relatively higher growth than others. The data indicates that GST has entered into a phase stable and predictable growth, which is encouraging to see. Higher growth on imports indicates buoyancy in cross border trade activities,” Jain said.
The growth rate in GST collections in year-on-Year terms in February is lower than 5.87% growth seen in April to February period (including Cess).
Saurabh Agarwal, Tax Partner, EY India, said as structural reforms continue to take hold, the trends in GST collection highlight a maturing tax ecosystem and a confident domestic market—setting the stage for sustained and inclusive economic momentum.
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