India’s Gross GST collections for February 2025 rose by 9.1% year-on-year to Rs 1.84 lakh crore, reflecting strong domestic consumption and indicating signs of economic recovery. According to official data released on Saturday, Central GST contributed Rs 35,204 crore, State GST Rs 43,704 crore, Integrated GST Rs 90,870 crore, and compensation cess Rs 13,868 crore.
Domestic GST revenues surged by 10.2% to Rs 1.42 lakh crore, while import-related GST collections grew by 5.4% to Rs 41,702 crore. Total refunds issued in February increased by 17.3% to Rs 20,889 crore, easing working capital pressures on businesses. Net GST collections for the month stood at Rs 1.63 lakh crore, marking an 8.1% rise compared to February 2024.
Experts attribute the robust GST figures to the effective implementation of Atma Nirbhar Bharat policies and improved domestic consumption. Saurabh Agarwal, EY Tax Partner, noted that the consistent rise in domestic GST revenue highlights the economy’s resilience amid global challenges. Abhishek Jain of KPMG emphasized that the 10.2% growth in domestic supplies signals a potential economic revival in the fourth quarter.
However, GST collections in February 2025 were lower than January’s Rs 1.96 lakh crore. MS Mani of Deloitte India pointed out significant growth in states like Maharashtra, Tamil Nadu, and Karnataka, while urging a detailed analysis of slower growth in Telangana, Gujarat, and Odisha. Vivek Jalan of Tax Connect Advisory Services highlighted that the fiscal deficit for FY24-25 is projected at 4.8%, below the budgeted 4.9%, due to strong GST collections.
From April 2024 to February 2025, gross GST collections grew by 9.4% to Rs 20.13 lakh crore, with net collections rising by 8.6% to Rs 17.79 lakh crore, underscoring the economy’s steady recovery.
