India’s February GST Revenue Rises 12.5%

March 2, 2024

On March 2nd, official data revealed India’s Goods and Services Tax (GST) gross revenue collection for February 2023 rose sharply by 12.54% year-on-year to cross ₹1.68 lakh crore. This marks both – the third highest monthly receipts from the indirect tax regime as well as the third best GST revenue growth figure for 2023-24.

Key Highlights

The ₹1.68 lakh crore provisional GST revenue accrual in February is the fourth highest recorded in any month historically.
On a sequential basis, February’s GST revenue growth rate of 12.54% reflects noticeable acceleration over 8.31% rise seen in January.
The steep expansion reinforces growth momentum in domestic economic activity as seen from higher manufacturing output and robust services activity.
Total GST collections for the April 2022-February 2023 period stand at ₹18.44 lakh crore – 11.7% greater than corresponding months of last fiscal year.
Monthly GST revenues have stayed above ₹1.4 lakh crore threshold for 15 straight months now highlighting the tax base stability.

State-wise Collections

Among major states, February GST collections rose sharply by 22% and 17% for Maharashtra and Karnataka respectively. Telangana recorded expansion of 14% in GST revenues.

Other states demonstrating double-digit revenue growth include Gujarat (13%), Haryana (27%) and West Bengal (18%).

Sectoral Contributions

Experts assess higher imports in recent weeks may have bolstered customs duties while domestic manufacturing and services activity continues its uptrend.

Service sector presentations like hotels and restaurants (18% growth), transportation services (16%), real estate (10%) showed robust upticks in February.

The sharp February GST revenue pickup signals resilient economic momentum amid global uncertainties. As we enter FY24’s last month, GST receipts staying above ₹1.4 lakh crore monthly underscores tax base deepening supporting government’s welfare spends while limiting deficit concerns.

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