GST collections rise 8.1% to ₹1.83 lakh crore in February; import surge, compliance gains signal structural shift

India’s Goods and Services Tax (GST) collections rose 8.1% year-on-year to ₹1.83 lakh crore in February 2026, reinforcing the narrative that the indirect tax system is entering a phase of stable and predictable growth even after GST rate rationalisation under GST 2.0.

The latest official data shows cumulative GST collections for FY26 at ₹20.27 lakh crore so far, up 8.3% from the previous year, suggesting that revenues are holding strong on a high base. While the headline numbers reflect steady growth, a closer analysis of the data reveals deeper trends — import-led revenue buoyancy, improving compliance, rising refunds, and diverging state-level performance.

Experts say these trends indicate that the GST regime is gradually maturing, with structural factors now driving collections rather than temporary spikes.The February numbers reaffirm fiscal stability as the financial year approaches its end.

Import-led GST growth highlights changing revenue mix

One of the key takeaways from the February GST data is the divergence between domestic and import-driven tax collections.

Domestic GST revenue growth: 5.3%

GST from imports (IGST): 17.2% growth

This suggests that trade activity and customs-side compliance are currently contributing more to GST growth than domestic consumption alone.

Rising refunds but strong net revenues

Another important signal from the February data is the rise in GST refunds, which increased 10.2%, even as net GST revenue remained strong.

Total refunds: ₹22,595 crore
Net GST revenue: ₹1.61 lakh crore
Net revenue growth: 7.9%

This trend suggests that the GST system is becoming more efficient in processing refunds without weakening revenue collections.
Mishra said this reflects a maturing tax administration.

“Equally important is the 10.2% rise in refunds, with net revenues still posting a healthy 7.9% increase. This indicates a maturing GST architecture that is balancing revenue strength with timely liquidity flows to businesses.”

“The real overachiever this month is import GST, jumping 17.2%. Meanwhile, export refunds through ICEGATE surged 26.5%, which means exporters are getting their money back faster.”

Industrial states continue to dominate GST collections

State-wise data shows that Maharashtra remains the largest contributor to GST revenues, followed by Karnataka and Gujarat, underlining the role of major industrial and services hubs in driving tax collections.

“The continued dominance of Maharashtra, followed by Karnataka and Gujarat, underscores the resilience of key industrial and services hubs.”

However, experts say the data also points to a broadening of economic activity across smaller and emerging states.

Diverging state trends raise concerns

“These GST collection figures reflect the fact that there has been a consumption uptick that has more than compensated for the rate reductions leading to an 8% increase in monthly collections.”

Compensation cess decline marks structural shift in GST

Another notable development in the February data is the sharp fall in compensation cess collections, following the end of the cess regime earlier this year.

GST entering a stable growth phase

Taken together, the February GST numbers suggest that India’s indirect tax system is moving into a more mature phase, where growth is supported by compliance improvements, formalisation, and expanding economic activity rather than temporary factors.

With FY26 nearing its close, the data indicates that India’s GST regime is stabilising, even as the economy navigates global uncertainties — a signal that the tax system is gradually delivering on its promise of sustained, broad-based revenue growth.