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New Delhi: India’s Goods and Services Tax (GST) collection for February 2025 stood at ₹1.84 lakh crore, reflecting a 9.1% growth compared to the same period last year. The increase in domestic consumption has fueled the growth, signaling a potential economic revival.
Breakdown of February’s GST Collection:
Central GST (CGST): ₹35,204 crore
State GST (SGST): ₹43,704 crore
Integrated GST (IGST): ₹90,870 crore
Compensation Cess: ₹13,868 crore
Domestic GST revenue rose 10.2% to ₹1.42 lakh crore.
GST from imports increased 5.4% to ₹41,702 crore.
Total refunds issued grew 17.3% to ₹20,889 crore.
While February’s collection of ₹1.84 lakh crore is lower than January’s record ₹1.96 lakh crore, it remains a strong indicator of economic resilience.
Maha Kumbh Effect: Will Next Month's GST Revenue Hit a New High?
Experts believe that the upcoming Maha Kumbh Mela could drive even higher GST revenues in March 2025 due to increased consumer spending and tourism-related activities.
KPMG India’s Indirect Tax Head, Abhishek Jain, noted:
"If the Maha Kumbh effect comes into play, next month's revenue growth could be even better."
Why Did GST Collections Rise in February?
Economic analysts attribute the GST surge to several factors:
1. Strong Domestic Consumption
The Atma Nirbhar Bharat policies have encouraged domestic manufacturing and consumption.
EY Tax Partner Saurabh Agarwal highlighted that domestic GST revenue is growing faster than import-related collections, indicating a resilient local economy.
2. Increased Disbursement of Refunds
The government has accelerated refund processing for both domestic businesses and exporters, easing their working capital pressure.
3. High GST Growth in Major Manufacturing & Consuming States
Large states like Haryana, UP, Maharashtra, Tamil Nadu, MP, and Karnataka reported 10-20% increases in GST collections.
Deloitte India Partner MS Mani pointed out that:
"A detailed evaluation of why states like Telangana, Gujarat, Assam, AP, and Odisha have only seen 1-4% growth could provide insights into GST performance variations."
4. Fiscal Deficit Under Control
Vivek Jalan of Tax Connect Advisory Services LLP mentioned that this year’s GST collection is nearly on target.
As a result, the government has revised its fiscal deficit estimate for FY24-25 down to 4.8%, lower than the initially budgeted 4.9%.
Year-to-Date GST Collection Performance
(April 2024 - February 2025 Performance)
Gross GST Collections: ₹20.13 lakh crore (+9.4% YoY)
Net GST Collections: ₹17.79 lakh crore (+8.6% YoY)
What’s Next?
With domestic consumption thriving and major events like the Maha Kumbh driving further spending, analysts expect GST revenues to remain strong in the coming months. If trends continue, March 2025 could see an even higher collection, reinforcing India's economic stability in the face of global uncertainties.
