NEW DELHI, March 1 -- Central and state governments collected Rs.1.61 trillion in Goods and Services Tax (GST) in February after refunds, marking a 7.9% year-on-year increase, official data released on Sunday showed.

The figure excludes GST compensation cess proceeds of more than Rs.5,000 crore received during the month. The cess was discontinued from 1 February after tobacco-the only commodity still attracting it following GST rationalization in September 2025-was moved into a new tax regime. The cess collection booked in February relate to sales in the previous month.

Gross GST collections before adjusting for refunds stood at Rs.1.84 trillion, up 8.1% from a year earlier, excluding compensation cess, the data showed.

Businesses rece...