With the GST implementation in July 2017, it was predicted that the manufacturing states might face the revenue loss but producer states such as Uttar Pradesh and Bihar would generate a hike in revenue collection. The data reveals that not only the manufacturing states but also the consumer states are not away from stating the bad revenue collection in last financial year. In FY 2017-18, 31 out of 34 states and union territories have been reported that GST collection is low than expectation.
GST council reviewed the states on 4 May in regard to GST collection and these shocking results came out. For the states including Punjab, Uttarakhand, Bihar and many, the GST collection touched only 30% as compared to targeted 74% of the collection.
States Away From Estimated GST Revenue Mark:
The central government fulfils the losses faced by states in case of lower SGT collection than the estimated amount. For every state, there is estimated GST collection amount pre-decided by the government and called protected revenue or pre-determined goals. This also means that if the GST collection for particular state goes below the figure then central government has to compensate for the revenue loss. This time, excluding three states, Manipur, Mizoram and Arunachal Pradesh, all the other states and union territories have reported GST collection below pre-determined goals.
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As the report suggests Uttar Pradesh and including 13 states, the GST collection went down between 10% to 30% for different states. Likewise, six states have reported the SGT collection below 10%. According to sources, in FY 2017-18, during July to March, the states like Karnataka, Gujarat, Tamil Nadu along with consumer states like Bihar and Uttar Pradesh also notified about the low GST collection. It is also informed by sources that the GST collection can face the low performance again in this financial year. However, the central government has executed e-way bill to increase the GST collection, but nothing can be said right now about the improvement.
GST Collection In Different States:
- States with more than 50% decrease in revenue:
- Dadra Nagar Haveli and Daman and Diu.
- States with 30% to 50% decrease in revenue:
- Puducherry, Uttarakhand, Punjab, Jammu Kashmir, Meghalaya, Chhattisgarh, Odisha, Chandigarh, Bihar, Jammu Kashmir and Himachal Pradesh
- States with 10% to 30% decrease in revenue:
- Madhya Pradesh, Assam, Nagaland, Uttar Pradesh, West Bengal, Kerala, Gujarat, Goa, Rajasthan, Karnataka, Jharkhand, Haryana, and Tripura
- states with below 10% decrease in revenue:
- Andhra Pradesh, Delhi, Maharashtra, Tamil Nadu, Telangana and Sikkim
- States with no loss of revenue:
- Manipur
- States with higher GST collection than estimated:
- Mizoram and Arunachal Pradesh
