SGST collections in first half: Karnataka, TN & Gujarat race together as Maha retains its lead

Tamil Nadu and Gujarat have had a decent run in state GST collections in the six-month period from April 2024 with each netting above Rs 22,000 crore. Maharashtra, however, has been miles ahead.

In the South, Karnataka and Tamil Nadu both did well in the first half of the current fiscal year. When it comes to growth over the same period last year, Karnataka registered 9.7% growth as against Tamil Nadu’s 4.3% as the latter did well in collections in the same period, last fiscal year.

Outside of the South, Maharashtra registered 11.8% growth at Rs 55,216 crore, while Gujarat achieved at a par with Karnataka and Tamil Nadu with Rs 22,256 crore. Delhi recorded 24.8% growth with Rs 8676 crore on a lower base, the official data shows. The national average in the state GST collections for six months was 10.1%.

In overall GST collections including CGST, SGST, IGST and cess, Karnataka has had a stellar run in the six months since April this year, among the southern states.

Maharashtra logged 11.3% growth on a healthy base while Delhi recorded a 22.3% growth on a lower base. The national average in six-month GST collection over the same period last year, however, has been 10.4%, according to the official data. Smaller states such as Manipur and Assam have clocked a growth upwards of 15% on a smaller base.

Commenting on Karnataka’s collection trends in September, Karnataka’s commercial taxes commissioner C Shikha said the state has recorded a 19% growth in GST collections at Rs 6330 crore net of refunds.The state has had a total collection of Rs 8430 crore in September from overall commercial taxes including sales tax levied on petrol and diesel, professional tax and luxury taxes.The state is getting more than Rs 2000 crore a month in revenues from sales tax on petrol and diesel. The same, however, was below this figure and jumped by about Rs 350-400 crore a month after the government increased the sales tax rate on auto fuels in June this year.

The growth in nationwide collections over the past six months is nothing to write home about as it represents nominal growth when adjusted against inflation. If states don’t record a sustained double digit growth in collections, it would force them to rely more on taxes from petroleum products to manage their finances in the event of a potential shortfall, said HD Arun Kumar, former additional commissioner of commercial taxes, Karnataka.

Gfx:

Note: *Growth in overall GST collection including CGST, SGST, IGST & cess in April-Sep 2024-25 over the same period in 2023-24. Source: www.gst.gov.inn)