GST: TN & KA States Continue to Maintain Their Amazing Performance in the Southern Region

GST revenue in July of Tamil Nadu and Karnataka has outdone the other states in average GST collection. The states are doing well in their growth in GST collection in the first four months of this fiscal year. On the contrary, Telangana has shown a decline by a single digit in its year-on-year growth rate in July. It achieved double-digit growth in April, May, and June.

The neighboring state, Andhra Pradesh attained a single-digit growth year-on-year in two of the four months this fiscal year, including July. While in May, the growth rate on the national average rate was equal to 11%.

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In these four months, Kerala surpassed the average growth rate at the national level in June and amounted to around the equal in May. The coastal state was way behind at the national average level in comparison to the same period the previous year in April and July.

Maharashtra keeps its position on top of the charts, recording Rs. 26,064 crore in July, leaving Karnataka just behind in the second position at Rs. 11,505 crore. Tamil Nadu is trying to come near the GST collection of Karnataka with Rs. 10,022 crore in July.

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In the initial four months of this fiscal year, Karnataka recorded a 20% growth rate, surpassing all other large states, even though Maharashtra has been leading in net collection. Maharashtra recorded an 18% growth rate, while Tamil Nadu recorded 18%, Telangana 13%, and Andhra Pradesh 9%, growth rates.

C Shikha, Commercial Tax Commissioner of Karnataka said that the significant rise in the collection was achieved because of better compliance by taxpayers. Additionally, in the department, she is working in, system-based analytics have been used for enhancing administration activities which will help detect cases.

Pankaj Chaudhary, Minister of States Finance, notified the Lok Sabha on July 31 that the net GST revenue on an average on a monthly basis for the fiscal years 2021-22 and 2022-23 have shown 30% and 22% year-on-year growth, respectively.

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If we talk about direct collection, Bengaluru is on side by side level with Delhi because the city has marked a significant income tax collection in the five-year period to 2022-23.

As per the sources and tax officials, the startup ecosystem and rising tech industry in Bengaluru attract fresh jobs, and an increase in pay has made the tax burden heavier. Moreover, during the fiscal year 2021-22, Bengaluru collected more GST than Delhi and reserved the second position in GST revenue after Mumbai.

GST Revenue Collection in Southern Region

Southern Region	GST Collection July 2023
Karnataka	11,505
Tamil Nadu	10,022
Telangana	4,849
Andhra Pradesh	3,593
Kerala	2,381