GST collections rose by 9.1% to Rs. 1.84 lakh Cr in Feb 2025

GST collections rose by 9.1 percentage points to about INR 1.84 lakh crore in Feb 2025

Basic Key Insights from February 2025 GST Collections

The 9.1% YoY rise in gross GST collections to ₹1.84 trillion in February 2025 reflects sustained domestic consumption and a potential economic revival. However, the collections are lower than ₹1.96 trillion in January 2025, which could be due to seasonal factors or month-end tax adjustments. Domestic GST revenues rose 10.2% YoY to ₹1.42 trillion, suggesting improved business activity and compliance. GST on imports grew 5.4% to ₹41,702 crore, indicating steady but cautious import demand. Breakdown of Collections:

• • CGST: ₹35,204 crore
  • SGST: ₹43,704 crore
  • IGST: ₹90,870 crore (including ₹41,702 crore from imports)
  • Compensation Cess: ₹13,868 crore

Refunds: ₹20,889 crore, a 17.3% YoY increase, implying better processing efficiency.

Net GST Collections: ₹1.63 trillion, up 8.1% YoY.

Growth in Gross GST Collections with Key Drivers of Growth

• February 2025 collections: INR 1.84 lakh crore (up 9.1% YoY from INR  1.68 lakh crore in Feb 2024). Net GST collections: INR  1.63 lakh crore (up 8.1% YoY from INR  1.50 lakh crore in Feb 2024). Lower than January 2025’s  INR 1.96 lakh crore, possibly due to seasonal factors.

• Domestic GST revenue surged 10.2% to INR 1.42 lakh crore, reflecting strong consumption and economic momentum. GST on imports grew 5.4% to INR  41,702 crore, indicating relatively moderate trade activity.

Fiscal Year-to-Date (April 2024 – February 2025) Performance

• Gross GST collections: INR 20.13 lakh crore (9.4% YoY growth).
• Net GST collections: INR  17.79 lakh crore (8.6% YoY growth).
• Moderate Import Growth: Comparative Analysis:

Month	Gross GST (INR Trillion)	Net GST (Trillion)
Feb 2025	1.84	1.63
Jan 2025	1.96	NA
Feb 2024	1.68	1.50

Compared to February 2024, gross collections were ₹1.68 lakh crore, and net collections were INR 1.50 lakh crore, reflecting steady growth in 2025. The lower collections in February compared to January could be due to a post-festive season dip in consumption, Possible deferment of payments post-January deadline, and industry-specific fluctuations. This trend suggests robust economic performance and consistent GST compliance, but the relatively lower growth in import revenues compared to domestic revenues may indicate a shift in consumption patterns or external trade dynamics.

Implications & Outlook on February 2025 GST Collections

• Continued economic momentum with strong domestic demand. Maha Kumbh and fiscal year-end activities could boost next month’s revenue.

• Some states underperformed, requiring policy focus on regional growth trends. And Robust GST collections support a lower-than-expected fiscal deficit.
• Slower growth in import revenues could indicate cautious trade trends. Strong domestic GST growth suggests continued economic stability.
• Improved compliance and refund processing, benefiting businesses.

GST Analysis of Gross GST collection in Jan 2025

India’s GST collections for September 2025

India’s GST collections for September 2025 (reflecting August transactions) stood at INR 1.89 lakh crore, marking a 9.1% year-on-year growth. However, net GST receipts—after accounting for refunds—grew at a slower pace of 5%, totaling INR 1.60 lakh crore. Here’s a breakdown of the key factors behind this divergence & Why Gross Collections Rose

Strong Import Activity: GST from imports surged 15.6% to INR 52,492 crore, indicating robust trade.  & Domestic Consumption: Domestic GST collections rose 6.8%, supported by resilient demand despite anticipated rate cuts. Businesses preemptively adjusted prices ahead of GST rate changes effective from September 22, which helped maintain momentum.

Why Net Collections Grew Slower

• Refund Surge: Refunds rose 40.1% to INR 28,657 crore in September. Domestic refunds increased by 52.2%. & Export-related refunds rose by 26.9%.
• Policy Changes: The GST 2.0 reforms, including slab rationalization and improved compliance mechanisms, led to faster refund processing.
• Compliance Improvements: Higher refund volumes also reflect better documentation and filing by businesses, especially exporters and MSMEs.

Component-Wise Breakdown (Gross vs Net)  :

Component	Gross Collection (INR  crore)	Net Collection (INR  crore)
CGST	33,645	30,247
SGST	41,836	37,553
IGST	1,01,883	81,706
Cess	11,652	10,853
Total	1,89,017	1,60,360

Cumulative Performance (Apr–Sep 2025)

• Gross GST: INR 11.93 lakh crore (+9.8% YoY)
• Net GST: INR 10.38 lakh crore (+8.3% YoY)
• Refunds: INR 1.55 lakh crore (+21% YoY)

Rajput Jain and Associates Expert Opinions

• India is resilient against global economic challenges. GST collections are on target, contributing to a lower revised fiscal deficit of 4.8% (vs. 4.9% budgeted).
• Major manufacturing and consuming states (Haryana, UP, Maharashtra, TN, MP, Karnataka) reported 10-20% GST growth. Increased refund disbursements ease working capital pressures for businesses. Some states lagged behind (Telangana, Gujarat, Assam, AP, Odisha with 1-4% growth), requiring further analysis.
• Growth in domestic GST signals Q4 economic revival. Maha Kumbh event may further boost collections in March 2025. Higher domestic GST growth vs import GST reflects Atma Nirbhar Bharat policies.