India’s GST rationalisation introduced a two‑tiered rate structure of 5% and 18% in September 2025, boosting domestic consumption. However, February 2026 saw a sharp rise in import IGST collections—up 17% YoY—driven by a weaker rupee and higher import costs, which may erode the price relief from the new rates.
India introduced a two‑tiered GST rate structure of 5% and 18% in September 2025.
Import IGST collections rose to ₹47,800 crore in February 2026, up from ₹40,800 crore a year earlier—a 17% increase.
Import IGST accounted for roughly 27% of gross GST collections in that period, up from about 24% the previous year.
The rupee fell about 4% against the dollar, raising assessable values and thereby increasing import IGST collections.
This summary was published on VATfaqs.com on 02 March 2026. It relates to VAT developments in India. The original source is The Hindu.
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