Maharashtra, Karnataka, UP lead in GST cess collection

The largest state economy Maharashtra leads the list of cess collection with the collection of 19,125 crore in Apr-Jan period of running financial year. The list has Karnataka with 13,738 crore and Uttar Pradesh with 13,004 crore on second and third rank respectively.

Maharashtra, Karnataka, UP, Odisha and Tamil Nade are leading in collecting GST cess levied specially on car sales, helping the Centre pay off the market loans taken to give liquidity to states during Covid times, has shown the data available from GST Council for this fiscal unto Jan 2024. Odisha collected Rs. 7,729 crore, while TN reported Rs. 7,291 crore. Gujrat, Haryana, Jharkhand and West Bengal are the other big contributors of GST cess.

On automobiles, aerated drinks and tobacco, GST cess is levied which are in 28% GST slab. The cess rate depends on the product and specifications. It ranges from 1% for petrol, CNG or LPG vehicle meeting certain conditions and 22% for sports utility vehicles to 290% in case of certain smoking mixtures for pipes and cigarettes. This levy may lapse in Mar 2026 or earlier but, based on the need for mobilising revenue, some form of tax may replace it. That depends on a decision to be taken by federal indirect tax body, GST Council reported on Feb 12.

Data also presented that Maharashtra and UP topped in proceeds of integrated GST or IGST on cross-border trade, settled by the Central government.

The importing state gets proceeds of IGST under indirect tax system. Maharashtra has received Rs 39,684 crore of IGST settlement so far this financial year, while UP received IGST settlement of Rs. 37,436 crore. Karnataka, TN, Rajasthan & Telangana are the other major recipients of IGST proceedings.

Maharashtra collected Rs. 83,114 crore of SGST so far this fiscal, followed by Rs. 34,656 crore by Gujrat, Rs. 33,785 crore by Karnataka and Rs. 27,044 crore by UP. This data confirms that some of the state economies like Maharashtra, Karnataka and TN are major importers and consumers of locally produced goods and services.

Centre & State revenue receipts have so far shown year-on-year growth of 10-15% in each of the 11 months so far this year. GST receipts which grew 11.63% in April last year, had seen a sudden rise in festive months of October and November when collections showed growth of 13.37% and 15.12 % respectively. In February, collections went up 12.54% to Rs 1.68 trillion. As per the data provided by finance ministry, the monthly average collection is Rs. 1.67 trillion.