GST collections rise 9% to ₹1.84 lakh crore; indicate economic revival, say experts

Gross GST collections rose by 9.1% to about ₹1.84 lakh crore in February, boosted by domestic consumption and indicating a potential economic revival.

As per the official data released on Saturday, on a gross basis, mop up from Central GST stood at ₹35,204 crore, State GST at ₹43,704 crore, Integrated GST at ₹90,870 crore and compensation cess of ₹13,868 crore.

GST revenues from domestic transactions jumped 10.2% to ₹1.42 lakh crore while that from imports grew 5.4% to ₹41,702 crore during February.

Total refunds issued during February were ₹20,889 crore, a 17.3% increase over the year-ago period. Net GST collections during February 2025 grew 8.1% to about ₹1.63 lakh crore.

Gross and net GST revenues in February 2024 were ₹1.68 lakh crore and ₹1.50 lakh crore, respectively.

The gross GST collections in February 2025, at ₹1.84 lakh crore are, however, lower than ₹1.96 lakh crore collected in January 2025.

EY Tax Partner Saurabh Agarwal said the robust GST collection figures indicate that the Indian economy is withstanding global economic challenges.

"The consistent rise in domestic GST revenue compared to import-related collections points to the effective implementation of the Atma Nirbhar Bharat policies.

“Furthermore, the government's increased disbursement of domestic and export refunds, including those related to inverted duty structures, demonstrates its commitment to easing working capital pressures on businesses," Agarwal said.

KPMG, Indirect Tax Head & Partner, Abhishek Jain said, "GST collections growth of 10.2% on domestic supplies and overall growth of 9.1% indicates a potential revival of the economy for Q4. If the Maha Kumbh effect comes into play, next month's revenue growth could be even better".

Deloitte India Partner MS Mani said while GST collections in large manufacturing and consuming states like Haryana, UP, Maharashtra, Tamil Nadu, MP, Karnataka have shown handsome increases in the range of 10- 20%, a detailed evaluation on the reasons for the low growth in the range of 1- 4% in Telangana, Gujarat, Assam, AP and Odisha could provide reasons on the factors responsible for growth in GST collections".

Tax Connect Advisory Services LLP Partner Vivek Jalan said this year's GST collection is almost on target and that is one of the reasons for revised estimates pegging fiscal deficit for FY24-25 lower at 4.8%, below the budgeted 4.9%.

So far this fiscal (April-February), gross GST collections have grown 9.4% to about ₹20.13 lakh crore, while net GST collections rose 8.6% to over ₹17.79 lakh crore.