New Delhi: India’s Goods and Services Tax (GST) collections remained resilient in February, with gross GST revenue at Rs 1.88 lakh crore for January transactions, marking a 2.95% year-on-year (Y-o-Y) rise. Excluding the cess component, gross GST collections increased 8.1% Y-o-Y to over Rs 1.83 lakh crore, highlighting steady core growth despite recent rate rationalization.
Net GST revenue, after refunds, grew 7.9% to Rs 1.61 lakh crore. Refunds rose 10.2% to Rs 22,595 crore, indicating improved processing and compliance. Cess collection stood at Rs 5,063 crore, sharply lower than Rs 13,481 crore in February last year, reflecting the discontinuation of the remaining GST compensation cess on tobacco and certain sin goods from February 1.
In terms of composition, Central GST (CGST) stood at Rs 37,473 crore, State GST (SGST) at Rs 45,900 crore, and Integrated GST (IGST) at Rs 1 lakh crore. Gross domestic revenue rose 5.3% to around Rs 1.35-1.36 lakh crore, while GST from imports surged 17.2% to Rs 47,837 crore.
The strong import growth suggests buoyant trade flows and consumption of imported goods, while domestic revenue growth points to a gradual strengthening of internal demand.
Sequentially, collections moderated 5.8% from January’s Rs 1.99 lakh crore, which had been elevated due to the inclusion of October-December quarterly returns. January had recorded Rs 1.93 lakh crore excluding cess, the highest since the September rate rationalization. After GST rates were cut on around 375 items effective September 22, collections dipped to Rs 1.70 lakh crore in November, rose to Rs 1.74 lakh crore in December, and climbed further to Rs 1.93 lakh crore in January. The pattern suggests that while rate cuts initially softened revenues, consumption gains have largely compensated over time.
The September reform merged four slabs of 5%, 12%, 18% and 28% into two principal rates of 5% and 18%, with a 40% slab introduced for select ultra-luxury goods and tobacco products. The move aimed to simplify the structure and stimulate demand. Current data indicates that the system is stabilizing under the revised framework.
However, state-level data reveals uneven performance. Major states such as Tamil Nadu recorded a 6% decline, Madhya Pradesh -8%, and Rajasthan -1%. Growth remained below the national average of 8% in West Bengal at 1%, Haryana at 2%, Uttar Pradesh at 5%, and Maharashtra at 6%. This divergence signals that while national consumption is improving, regional disparities persist and could be a concern for policymakers.
Overall, the 8.1% growth excluding cess underscores a consumption-led recovery and a maturing GST ecosystem, though the pace toward consistently breaching the Rs 2 lakh crore monthly mark may remain gradual under the rationalized rate regime.