Sunday, 26 Oct, 2025
By: Anshul Vipat
Maharashtra continued to contribute maximum GST collections followed by Tamil Nadu, Gujarat and Karnataka
The GST is a value-added tax applied on the majority of goods and services sold for domestic consumption. Consumers pay the GST, but businesses that provide products and services remit it to the government. GST is levied on the 'supply' of goods or services, as opposed to the prior concept of levy on the manufacture of things, the sale of goods, or the provision of services. The rates of CGST, SGST, and IGST are mutually agreed upon by the Centre and the States. The rates are announced based on the GST Council's suggestion. In May 2015, the GST (122nd Constitutional Amendment) Bill, 2014 was enacted. It was enacted as the Constitution (101st Amendment) Act, 2016, and went into force on September 16, 2016. The GST was implemented on July 1, 2017.
Among the 5 months compared in the chart, the GST revenue collection was lowest in June 2021 at Rs. 92,800 crore and the highest was recorded in the month of April in 2022 at Rs. 1,67,540 crore. The GST collection had decreased by around Rs. 27,000 crore in May 2022 as the GST revenue collection stood at Rs. 1,40,885. It witnessed a gradual recovery in the months of June and July 2022 but again decreased by around Rs. 5000 crore to Rs. 1,43,612 in August 2022. Though the collection has decreased, it recorded a 28 percent Y-o-Y increase in August as the revenue collection was reported to be Rs. 1,12,020 in August 2021 and Rs. 1,43,612 in the previous month.
Talking about state-wise GST collection, Bihar witnessed the highest growth in GST revenue collection as it had collected Rs. 876 crore in August 2021 and this year in August, its GST collection was reported to be Rs.1466 crore which is 67 percent higher as compared to August 2021. Nagaland reported the second highest jump collecting 61 percent more than it did a year before. Lakshwadeep reported a whopping 731 percent increase in GST collection. Among larger states, Maharashtra reported the highest growth at 29 percent. It also continued to contibute maximum to the overall GST collection with a total collection of Rs. 21,403 in August 2022. Karnataka recorded a growth of 29 percent in GST revenue collection. It had collected Rs. 7783 crore in August 2021 and this year in August, its collection stood at 9,780 crore.
According to the experts, the GST revenue collection is expected to increase in the upcoming months due to the festive season but at the same time, the increase in Repo rates by the RBI and tightening of other economic and market policies, the GST collection is expected to rise gradually but not exponentially.
