UP shines in GST collections as other States struggle to meet growth targets
Several States and union territories, including Arunachal Pradesh, Nagaland, Meghalaya, Andaman & Nicobar, J&K, and Lakshdweep, saw negative growth in GST collections
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India's GST revenue collection for April 2024 was the highest ever at Rs 2.10 lakh crore, exceeding Rs 2 lakh crore for the first time. This reflects a strong year-on-year growth of 12.4% (gross) and 17.1% (net)
Uttar Pradesh has fared well on the front of GST collections in April, which had been originally collected in March collections accrued in April. Other States have either done marginally well or are lagging behind the national average.
GST revenue collection for April has been the highest ever at Rs 2.10 lakh crore. GST collections breached landmark milestone of Rs 2 lakh crore. Gross revenue recorded 12.4 per cent y-o-y growth. Net revenue (after refunds) stood at Rs 1.92 lakh crore; 17.1 per cent y-o-y growth.
SBI official Rajeev Kumar said, “This April figure is less by 6 per cent, when one looks at the growth figure which had been registered in April 2022.”
There are 22 states and 8 union territories in the country. Out of the 28 States, seven fall in north-east. Among them, three States - Arunachal, Nagaland and Meghalaya have registered negative growth. Similarly, three union territories - Andaman Nicobar, J&K and Lakshdweep have also registered negative growth on the front. Falling on the similar lines, the growth in union territories like Ladakh, Puducherry, Dadra Haveli and Daman & Diu is marginal.
Coming back to states, Sikkim has seen negative growth. Again, States like Jharkhand, Uttarakhand, Himachal Pradesh, Kerala and Karnataka have registered growth still, the rate of growth was less than the average 13 per cent mark. In fact, these States could not see double-digit growth. Yes, Uttar Pradesh has registered 19 per cent growth, which is praiseworthy.
Talking to Bizz Buzz, Subhash Varshney, former principal chief commissioner of GST in Mumbai, said, “Normally, revenue for the month of March is always higher than that of other months. Nevertheless, the exemplary augmentation of revenue during March this year is indicator of fabulous growth in supply of services and goods. It is manifestation of the growth story of India.”
“The all-time high GST collection in April has come on the back of strong growth in GST collections from Northern States like UP, Punjab, Haryana and Delhi. The GST collection in April month has traditionally been higher (the previous highest GST collection was also achieved in April, 23), given that it reflects the economic activity in the month of March, which is the last month of the fiscal year” said Gunjan Prabhakaran, Partner & Leader, Indirect Tax, BDO India.
The core sector growth eased to 5.2 per cent in March, as the leap year effect faded, with five of the components reporting a flattening trend in the sequential months. Disconcerting, two segments displayed a contraction, namely petroleum refinery products and fertilizers, while the growth of crude oil output declined to a tepid 2.1 per cent. On a positive note, coal, cement and electricity generation expanded by 8.0 per cent or more in March.
Electricity generation displayed a healthy expansion in March, and maintained a robust pace in April, with rising heat likely boosting agricultural and household demand. Similar to the trend displayed by the core sector, IIP growth is likely to moderate somewhat in March, as the leap year effect fades. ICRA project the IIP growth at 3.5-5 per cent in March.
