Ministry of Finance released official data showing that India’s gross Goods and Services Tax (GST) collections grew 8.1% year-on-year to ₹1,83,609 crore in February.
While the figure reflects a sequential moderation from January’s record ₹1.93 lakh crore (which was boosted by quarterly returns), the year-on-year growth signals a resilient consumption engine despite significant tax rate rationalizations introduced in late 2025.
Key Revenue Breakdown
The growth was primarily powered by a massive surge in import-linked revenues, which outpaced domestic growth.
| Category | Amount (Feb 2026) | YoY Growth |
| Gross GST Collection | ₹1,83,609 Crore | +8.1% |
| Domestic Revenue | ₹1,35,772 Crore | +5.3% |
| Import Revenue (IGST) | ₹47,837 Crore | +17.2% |
| Total Refunds Issued | ₹22,595 Crore | +10.2% |
| Net GST Revenue | ₹1,61,014 Crore | +7.9% |
- Cess Impact: Net cess revenue declined sharply to ₹5,063 crore (from ₹13,481 crore last year). This follows the government’s strategic phase-out of the compensation cess, which officially ended for most categories on January 31, 2026.
- FY26 Cumulative: The total gross collection for the current financial year (up to Feb 28) has reached ₹20.27 lakh crore, an 8.3% increase compared to the previous year.
State-Wise Trends: The Industrial Leaders
The data revealed a widening gap between industrialized, consumption-heavy states and smaller, resource-dependent regions.
Top Performers (Pre-Settlement)
- Maharashtra: ₹10,286 crore (the highest contributor)
- Karnataka: ₹4,353 crore
- Gujarat: ₹4,276 crore
- High-Growth States: Sikkim recorded a massive 67% growth, followed by Meghalaya (33%) and Bihar (23%).
The “Laggards” (Negative Growth)
Several major states reported a contraction in post-settlement State GST (SGST) revenue, which analysts describe as a “matter of concern”:
- Jharkhand: -44% (the steepest fall)
- Chhattisgarh: -23%
- Madhya Pradesh: -16%
- Tamil Nadu: -6%
Expert Analysis: The “GST 2.0” Phase
Experts from Deloitte and Grant Thornton suggest that the 8% growth is particularly significant because it occurred after the government slashed rates on over 375 items in September 2025.
“The consumption uptick has more than compensated for the rate reductions. While collections were earlier approaching the ₹2 trillion mark, the rate cuts have pulled them back, and it will take some more time for that milestone to emerge consistently.” — M.S. Mani, Partner, Deloitte India
Impact on the Economy
The strong 17.2% jump in import revenues suggests robust industrial demand and a buoyancy in cross-border trade, even as the global economic environment remains uncertain. The steady rise in net revenue (7.9%) despite higher refunds indicates a maturing tax architecture that is providing timely liquidity to businesses.
