Gross domestic GST mop-up grows 16 per cent

Barring four states/Union Territories, rest 33 states/UTs have posted a double-digit growth in gross GST revenue collections from domestic sales, significant at a time when the overall slowdown has affected the tax revenue growth for both direct and indirect taxes.

GST, GST collection, GST revenue collections, GST collections 2020, GST collections 2019,Business news, Indian Express

This revenue growth for states, however, is different from the revenue earned through States GST (SGST) and Integrated GST (IGST), which is used as the basis for compensation payment under GST.

Gross domestic Goods and Services tax (GST) collections (including revenue for states and Centre) grew 16 per cent year-on-year in December, even as the overall gross collections grew 8.9 per cent, dragged down by a 10 per cent contraction in revenue from imports. The non-special category states showed an average growth of 12.7 per cent, with the highest growth in gross GST revenue collections for Maharashtra (22 per cent), followed by Tamil Nadu (19 per cent) and Gujarat (18 per cent). Special category states recorded GST revenue growth rates varying from 43 per cent (Sikkim) to 124 per cent (Arunachal Pradesh).

Barring four states/Union Territories, rest 33 states/UTs have posted a double-digit growth in gross GST revenue collections from domestic sales, significant at a time when the overall slowdown has affected the tax revenue growth for both direct and indirect taxes. Jharkhand (-3 per cent) and Lakshadweep (-78 per cent) were the only two regions that showed a contraction in gross GST mop-up.

This revenue growth for states, however, is different from the revenue earned through States GST (SGST) and Integrated GST (IGST), which is used as the basis for compensation payment under GST. Gross domestic GST revenues would also include Centre’s revenue share from Central GST and IGST. As per the GST (Compensation to States) Act, states have been guaranteed compensation at annual compounded rate of 14 per cent over the 2015-16 base year.

IGST on import of goods declined 10 per cent in December, though the pace of decline improved from 13 per cent last month and 20 per cent in October.

Aanchal Magazine

Aanchal Magazine is a Senior Assistant Editor with The Indian Express, serving as a leading voice on the macroeconomy and fiscal policy. With over 13 years of newsroom experience, she is recognized for her ability to decode complex economic data and government policy for a wider audience. Expertise & Focus Areas: Magazine’s reporting is rooted in "fiscal arithmetic" and economic science. Her work provides critical insights into the financial health of the nation, focusing on: Macroeconomic Policy: Detailed tracking of GDP growth, inflation trends, and central bank policy actions. Fiscal Metrics: Analysis of taxation, revenue collection, and government spending. Labour & Society: Reporting on labour trends and the intersection of economic policy with employment. Her expertise lies in interpreting high-frequency economic indicators to explain the broader trajectory of the Indian economy. Personal Interests: Beyond the world of finance and statistics, Aanchal maintains a deep personal interest in the history of her homeland, Kashmir. In her spare time, she reads extensively about the region's culture and traditions and works to map the complex journeys of displacement associated with it. Find all stories by Aanchal Magazine here ... Read More