Home / Business and Economy / GST Collections Surge 7.9% to ₹1.61 Trillion
GST Collections Surge 7.9% to ₹1.61 Trillion
1 Mar
Summary
- February GST collections reached ₹1.61 trillion, a 7.9% increase year-on-year.
- Refunds totaling ₹22,595 crore were issued in February, aiding businesses.
- Economic growth and domestic consumption are strong, supporting tax revenues.
In February, central and state governments collected ₹1.61 trillion in Goods and Services Tax (GST) after refunds, a 7.9% rise from the previous year. This figure excludes over ₹5,000 crore in GST compensation cess, which was discontinued from February 1. Gross GST collections before refunds stood at ₹1.84 trillion, an 8.1% increase.
Businesses received ₹22,595 crore in refunds in February, with a substantial portion going to exporters. Net GST collections for the first eleven months of FY26 reached ₹17.46 trillion, showing a 6.9% annual increase. The government has noted that GST rate cuts implemented in September 2025 have positively impacted demand.
Household spending saw a strong 8.7% growth in the December quarter of FY26, contributing to the estimated 7.8% economic growth for that period. Experts believe these trends, including the GST 2.0 impact on domestic consumption, indicate a maturing tax ecosystem and a confident domestic market, fostering sustained economic momentum.
