H1 FY23 GST mop-up: Karnataka replaces Gujarat as No 2, Maharashtra remains No 1
With 38%, Karnataka recorded the highest growth rate among states and even outpaced Maharashtra that had the highest collection but a growth rate of 33%
In terms of GST revenues in the first six months of the current fiscal (H1 FY23), Karnataka has moved to the No 2 rank, overtaking Gujarat. Maharashtra, meanwhile, retains the No 1 slot. In H1 FY22, Gujarat had stood second while Karnataka was third.
Since May 2022, Karnataka has been outpacing other big states in GST collection growth.
The highest growth at 38% was recorded by Karnataka. This fiscal, Karnataka’s total GST collection at ₹59,035 crore in the first six months was still less than half of Maharashtra’s ₹1,32,544 crore. For Gujarat, this was ₹56,679 crore.
Behind Karnataka’s numbers
Karnataka’s impressive performance comes close on the heels of its capital, Bengaluru overtaking Delhi to emerge as the second highest direct tax paying city in FY22, said an Economic Times report. Mumbai remains the top city in this regard.
The tax collection growth for both Karnataka and Maharashtra was faster than the national average in September, according to government data.
The top five in GST H1 FY23 revenues were completed by Tamil Nadu registering a 28% growth and Delhi with 29% growth. In real terms, Tamil Nadu’s collections rose from ₹40,025 crore last fiscal to ₹51,133 crore in the first six months of this fiscal. Delhi saw its collection go up to ₹27,714 crore this FY from ₹21,505 crore last financial year.
AP too above national average
Andhra Pradesh also surpassed the national average by registering a collection level of 28.79 per cent. The state collected ₹25,928 crore as against the target of ₹27,445 crore in the first half of the present fiscal, according to a statement by the AP Chief Minister’s Office.
In another first, Punjab’s GST collection crossed the ₹10,000 crore mark for the first time in the first six months of this fiscal. State Finance Minister Harpal Singh Cheema said the state has seen a 22.6 per cent year-on-year growth in GST collection so far in the current fiscal.
He said that in the first six months of the last financial year, GST collection stood at ₹8,650 crore, whereas during the current year, the state earned ₹10,604 crore. He also said the Punjab government had estimated a total GST collection of ₹20,550 crore for FY23.
Domestic transactions up 22%
Revenues from domestic transactions grew 22%, but there were significant variations in the trend seen across States. Revenues jumped 67% in Bihar, 35% in Goa, 33% in Haryana, 32% in Delhi and 29% in Maharashtra.
Kerala and West Bengal (27%), Karnataka (25%) and Uttar Pradesh (23%) also grew faster than the national average, but Andhra Pradesh with 21% growth, followed by 16% in Gujarat, 13% in Odisha and 10% in Tamil Nadu, lagged behind.
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Better compliance behind growth
This increase in GST collections is a clear impact of various measures taken by the GST Council to ensure better compliance, according to an earlier statement from the Union Finance Ministry. Better reporting coupled with economic recovery has been having a positive impact on the GST revenue on a consistent basis. The finance ministry has also attributed the robust collections to the GST portal being glitch-free.
In September, the GST portal saw 11-million-plus e-way bills and e-invoices being generated, setting a new milestone.