18.08.2023: 18% GST collection in state in 4 months; highest in India

The state has recorded a steady growth of 18% in the Goods and Services Tax (GST) collection from April to July this financial year compared to the national growth which ranged between 11% and 12%.

After accounting for 15% of the GST collection of the country in 2022-23, Maharashtra saw growth between 16 and 21% in the four months of the current fiscal year. In April, the revenue stood at 33,196 crore – 20.74% growth compared to the corresponding month of the last fiscal year. The revenue dropped to 23,536 crore (15.87% deficit) in May, however, it rose again in June to 26,098 crore (16.82% growth) and 26,064 crore (17.78% growth) in July.

Meanwhile, the national growth in these four months stood at 12% in April, May and June and 11% in July.

The SGST collection in Maharashtra has ranged between 7,409 crore to 10,392 crore, apart from the monthly contribution of about 3,500 crore from integrated GST. “The annual revenue target of the GST collection set by the state government is 1,36,041 crore. We expect the collection of 11,337 crore a month, against which the collection is more than 7% more during this period. We expect the rise over the target to be at least 12%,” a state official said.

They added that the growth, which is more than the expectation of the state government and is much above the national growth, is owing to the fantastic performance of services and manufacturing sectors and is likely to continue throughout the financial year.

“The state GDP has been driven by these sectors and growth in the GST is owing to them. The central government’s efforts to plug tax evasion by using business intelligence tools has also helped the state to keep the revenue growing,” an official from the GST Commissionerate said.

Another official said that the growth is unlikely to differ as the election year will give a boost to the economy. “The general elections always see enormous money pumped into the economy giving it a boost. With the central government’s focus on the infrastructure sector and Maharashtra being the obvious beneficiary, the growth engine in the state is unlikely to slow down,” he said.

In 2022-23, Maharashtra’s collection from the GST was 2,70,346 crore which was 15% of the country’s collection of 18.1 lakh crore. It was much more than Karnataka ( 1.2 lakh crore) and Gujarat ( 1.1 lakh crore) that stood second and third respectively.

Source: The Hindustan Times 

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