India’s GST collections rise 8.1% YoY to ₹1.83 lakh crore in February; FY26 mop-up at ₹20.27 lakh crore

India’s gross goods and services tax (GST) collections rose 8.1% year-on-year to ₹1.83 lakh crore in February 2026, indicating steady fiscal momentum supported by resilient consumption and strong import-linked revenues, according to official data released on Sunday.

With this, cumulative gross GST collections for FY26 (April–February) reached ₹20.27 lakh crore, up 8.3% over the corresponding period last year. Cumulative net revenue growth stood at 6.2%.

Gross domestic revenue grew 5.3% to ₹1.36 lakh crore in February, while gross import revenue climbed 17.2% to ₹47,837 crore, indicating sustained trade activity and higher Integrated GST (IGST) inflows.

After refunds worth ₹22,595 crore — up 10.2% year-on-year — net GST collections stood at ₹1.61 lakh crore, marking a 7.9% annual increase. Net cess revenue declined sharply to ₹5,063 crore from ₹13,481 crore a year ago, following the end of the compensation cess regime on January 31, 2026.

Consumption resilience, structural shift

MS Mani, partner at Deloitte India, said the February figures suggest a consumption uptick that has more than compensated for recent GST rate reductions.

“Collections were inching towards ₹2 lakh crore per month, but the rate reductions have pulled it back somewhat. It will take some more time for the ₹2 lakh crore mark to emerge consistently,” Mani said, adding that strong GDP and macroeconomic data reinforce the growth trend.

Mahesh Jaising, partner and indirect tax leader at Deloitte India, said domestic GST revenues continue to show resilience despite rate rationalisation under GST 2.0. He noted that domestic GST revenue growth over the last three months since significant rate cuts stands at 5.8%, which is encouraging.

“With the compensation cess having ended, the sharp moderation in cess collections marks a structural shift in the GST framework,” Jaising said, adding that stability in collections remains noteworthy amid global trade uncertainties.

Trade boost, compliance gains

Manoj Mishra, partner and tax controversy management leader at Grant Thornton Bharat, said the February data reflects structural stability rather than cyclical spikes.

“GST revenues are holding firm even on a high base,” Mishra said. He pointed out that domestic revenues grew at a moderate 5.3%, while import-linked IGST rose 17.2%, suggesting that trade activity and tighter customs-side compliance are currently providing a stronger lift than core domestic demand.

He also highlighted the 10.2% rise in refunds alongside a 7.9% increase in net revenues as evidence of a maturing GST architecture balancing revenue strength with timely liquidity flows to businesses.

Mishra added that the continued dominance of Maharashtra, followed by Karnataka and Gujarat, underscores the resilience of key industrial and services hubs.

Despite overall national growth, some large states reported weaker trends, hinting at regional divergence. Analysts said the data points to calibrated growth, improved compliance efficiency, and sustained formalisation as FY26 approaches its close.