GST Collections Hit Record High in February
India’s GST collections rose 8.1% year-over-year to a record ₹1.83 lakh crore in February, signaling broad-based consumption growth. However, the data reveals regional disparities, with states like Jharkhand recording a sharp 44% decline, highlighting uneven economic activity across the country.
While the national GST figures suggest a robust economic momentum, the state-wise data for February reveals a more complex picture of growth. After accounting for refunds, the net GST revenue for the month stood at ₹1.61 lakh crore, a healthy 7.9% increase from the previous year. This growth was significantly bolstered by a 17.2% surge in revenue from imports, while collections from domestic transactions saw a more modest 5.3% rise. The total gross GST revenue for the financial year 2025-26 (up to February 28) reached ₹20.27 lakh crore, marking an 8.3% increase compared to the same period in the previous year. This consistent upward trend in collections has been attributed to a combination of factors, including a resilient economy, sustained consumer demand, and improved tax compliance. However, the growth is not uniform across the country. Several industrial and consumption-driven states have shown strong performance. Maharashtra led the contributions with the highest pre-settlement GST revenue, followed by Karnataka and Gujarat. States like Haryana, Tamil Nadu, and Sikkim also recorded double-digit growth in their collections. In stark contrast, a number of states witnessed a contraction in their GST revenues. Besides Jharkhand's significant 44% drop, states including Chhattisgarh, Madhya Pradesh, West Bengal, and Odisha also reported a decline in collections for February. This highlights a growing divergence in economic activity between different regions of the country. The situation in Jharkhand is particularly noteworthy. As a state with a significant manufacturing base, it has historically expressed concerns about potential revenue losses under the consumption-based GST regime. While the precise reasons for the sharp fall in February's collections have not been specified, the state's recently tabled economic survey does project a moderation in its economic growth for the upcoming fiscal year.
