February GST Collections Rise 9.1% YoY to Rs 1.84 Lakh Crore

Synopsis

India’s GST collections in February surged by 9.1%, totaling Rs 1.84 lakh crore, marking a notable growth trend. This growth is fueled by higher domestic GST revenues and indicates a recovering economy with revised GDP growth estimates.

Key Takeaways

GST collections rose by 9.1% YoY in February.
Domestic GST revenues increased by 10.2%.
Net GST collections after refunds were Rs 1.63 lakh crore.
India's GDP growth in Q3 was 6.2%.
Government revised GDP growth estimate to 6.5% for FY25.

New Delhi, March 1 (NationPress) India’s Goods and Services Tax (GST) collections for February have experienced a remarkable growth of 9.1 percent year-on-year, reaching around Rs 1.84 lakh crore, as per the official statistics published on Saturday.

This achievement marks the 12th consecutive month in which GST revenues have surpassed Rs 1.7 lakh crore.

The growth in collections was largely influenced by a 10.2 percent increase in domestic GST revenues, which amounted to Rs 1.42 lakh crore, alongside a 5.4 percent rise in import-related revenues, totaling Rs 41,702 crore.

Further analysis of the data shows that the revenue from Central GST reached Rs 35,204 crore, while State GST collections amounted to Rs 43,704 crore.

The Integrated GST collection was recorded at Rs 90,870 crore, with the compensation cess being Rs 13,868 crore.

After adjusting for refunds, the net GST collections for February 2025 grew by 8.1 percent, totaling approximately Rs 1.63 lakh crore.

During the month, total refunds issued were Rs 20,889 crore, which is a 17.3 percent increase compared to the same period last year.

For February 2024, gross and net GST revenues stood at Rs 1.68 lakh crore and Rs 1.50 lakh crore, respectively.

However, on a sequential basis, collections were lower due to February having only 28 days of data.

GST revenue growth had remained in single digits for four months until it picked up in January 2025, reaching a nine-month high of 12.3 percent.

In parallel, India’s economy has shown signs of recovery in the third quarter of FY25. Official figures released on February 28 indicated that GDP growth in Q3 was 6.2 percent, compared to 5.6 percent in the prior quarter.

The government also elevated its GDP growth forecast for FY25 to 6.5 percent.

To meet this target, India’s economy would need to expand by 7.6 percent in the fourth quarter.

Chief Economic Adviser (CEA) V Anantha Nageswaran remarked that this goal is attainable, highlighting increased spending related to the Mahakumbh event and the government's ongoing capital expenditure initiatives as significant drivers of growth.