GST Collections Soar By 9.1% To Rs 1.84 Lakh Crore In February 2025
India's Goods and Services Tax (GST) collections continued their robust performance, registering a significant 9.1% year-on-year growth to reach approximately Rs 1.84 lakh crore in February 2025, according to official data released on Saturday, March 1.
Domestic and Import Revenue Growth
The impressive GST collection figures reveal a strong performance across multiple revenue streams:
- Domestic revenue jumped by 10.2% to Rs 1.42 lakh crore
- Import revenue increased by 5.4% to Rs 41,702 crore
This growth pattern suggests continued strength in domestic economic activity alongside a moderate increase in import-related transactions during February.
Component-Wise GST Collections
Breaking down the gross GST collections for February 2025, the data reveals the following component-wise contributions:
- Central GST (CGST): Rs 35,204 crore
- State GST (SGST): Rs 43,704 crore
- Integrated GST (IGST): Rs 90,870 crore
- Compensation Cess: Rs 13,868 crore
The distribution across CGST, SGST, and IGST components indicates a balanced revenue collection pattern across central and state jurisdictions.
Net Collections and Refunds
After accounting for refunds, the net GST collections for February 2025 stood at Rs 1.63 lakh crore, representing an 8.1% growth compared to the same period last year.
Notably, the total refunds issued during February 2025 amounted to Rs 20,889 crore, marking a significant 17.3% increase over the refunds issued in February 2024. This substantial rise in refunds demonstrates the government's commitment to timely processing of taxpayer refund claims.
Year-on-Year Comparison
When compared to February 2024 figures, the current GST collections show positive momentum:
- February 2024 Gross GST: Rs 1.68 lakh crore
- February 2025 Gross GST: Rs 1.84 lakh crore (9.1% increase)
- February 2024 Net GST: Rs 1.50 lakh crore
- February 2025 Net GST: Rs 1.63 lakh crore (8.1% increase)
Economic Implications
The consistently improving GST collections serve as a positive indicator of economic activity and tax compliance in India. The 10.2% growth in domestic revenue is particularly noteworthy as it suggests strengthening internal consumption and business activities.
While import-related GST growth was more modest at 5.4%, it still indicates continued international trade momentum despite global economic uncertainties.
GST Revenue Trends
February's robust collection continues the trend of strong GST performance in the current fiscal year. The higher-than-expected growth in both gross and net collections reflects improving tax compliance, expansion of the formal economy, and effectiveness of anti-evasion measures implemented by tax authorities.
The sustained double-digit growth in domestic GST revenue is especially encouraging for economic observers as it points to resilient internal demand and business activity despite external challenges.
Future Outlook
With just one month remaining in the current fiscal year, the strong February GST collections position the government favorably to meet or potentially exceed its annual revenue targets. The consistent growth in GST collections provides fiscal headroom for the government while indicating underlying economic strength.
Financial analysts will be closely monitoring the March figures to assess the full-year GST performance and its implications for India's overall fiscal health in the coming fiscal year.
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