Gujarat’s GST collection recorded a quantum leap of Rs 9,765 crores in August, a 12.4% increase compared to the same month last year when it was Rs 8,684 crores. Gujarat achieved the highest GST collection figures in India, following Maharashtra (Rs 23,282 crores) and Karnataka (Rs 11,116 crores).
What makes the feat even more impressive is that Gujarat’s tax collection growth rate bettered the national average of 11% for August, when the country collected Rs 1.14 lakh crores in taxes.
SGST revenue reached Rs 4,933 crores during the month, a 22% jump from Rs 4,054 crores in August 2022. Further, the state collected Rs 2,514 crores in Value Added Tax (VAT) on non-subsumed items such as fuel and liquor.
Rising raw material costs, growing prices of essential and other commodities, and a spurt in demand before the festive season have contributed to the state’s impressive tax collection, which encompasses SGST, IGST, and CGST revenues, a media report highlighted.
In the current fiscal year, Gujarat’s total income from GST and VAT reached Rs 49,968 crores, the report said.
“Inflation remained significantly high during the month. Therefore, effective tax collection on products will automatically be higher. However, consumption across goods and services also rose thanks to the onset of the festive and increment seasons. As a result, overall tax collection rose,” an industry source told the newspaper. “Tax revenue will continue to rise in the coming months as the festive season drives consumption across the state.”