After so many ups and downs, encompassing the new Goods and Services Tax Regime (GST), Gujarat stood at the third position in GST collection among the top five states and managed to maintain its position throughout the country.
The total GST collection comprises state GST (SGST), Central GST (CGST) and integrated GST (IGST). According to the figures provided by the Union Finance Ministry, Gujarat GST collection stood at Rs 21,859 crores and scored the third position across the country. It comes after, Maharashtra scored number one position with GST collection Rs 49,538 crores whereas Tamil Nadu stood at the second position with Rs 22,083 crores till 30th November.
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Additionally, in terms of SGST collection, Gujarat stood at fourth position with the collection of Rs 7,375 crore. In Maharashtra, it was Rs 18,701 crores, Tamil Nadu was Rs 8,739 crore and Karnataka was Rs 7,736 crore.
Discussing the achievement reasons of state, According to Shailesh Patwari, President of Gujarat Chamber of Commerce & Industry (GCCI): “Gujarat is a state with strong manufacturing industry in various sectors such as ceramics, pharmaceuticals, textiles, and chemicals, among others. Earlier, under Central Sales Tax (CST) regime, state government revenues from industries were high. However, GST is a destination-based consumption tax. Therefore, the revenues resulting from IGST will accumulate in the bank of the consuming state and not the manufacturing state.”
He further added that “Despite this, if Gujarat’s collection ranks among the top four, it is commendable. At the same time, the revenue in Gujarat, be it SGST or total GST is less than half as compared to Maharashtra which tops the chart. That explains how the state revenues are getting affected.”
