Karnataka overtakes Gujarat to take the second place in H1 GST collections

Karnataka has overtaken Gujarat in items and companies tax collections within the first six months of this fiscal 12 months, taking the second place behind Maharashtra amongst states.

Gujarat was second in GST collections throughout the identical interval final 12 months, and Karnataka was third.

Since Could this 12 months, Karnataka has persistently outpaced all massive states, together with Maharashtra, in GST assortment progress.

Karnataka's industrial taxes commissioner C Shikha attributed the southern state's sturdy efficiency to higher compliance by sellers in addition to elevated vigilance by authorities.

The state's spectacular efficiency comes shut on the heels of its capital, Bengaluru, overtaking the nationwide capital Delhi to emerge because the second highest direct tax paying metropolis after Mumbai within the final monetary 12 months (2021-22).

This fiscal 12 months, Karnataka's whole GST assortment at Rs 59,035 crore within the first six months was nonetheless lower than half of Maharashtra's Rs 1,32,544 crore. For Gujarat, this was Rs 56,679 crore.

Karnataka reported 60% (vs 44% all India) progress within the GST collections over the identical interval final 12 months in Could, 73% (56%) in June, 45% (22%) in July, 29% (19%) in August and 25% (22%) in September. For the primary half this fiscal 12 months, the rise was 38% from a 12 months earlier.

The tax assortment progress for each Karnataka and Maharashtra was quicker than the nationwide common in September, in response to authorities information.

Nationally too, GST collections have remained sturdy. For seven months in a row this calendar 12 months, India's month-to-month GST revenues have been greater than Rs 1.4 lakh crore. The expansion until September within the calendar 12 months over the identical interval final 12 months was 27%.

This can be a clear affect of varied measures taken by the GST Council to make sure higher compliance, in response to an earlier assertion from the union finance ministry. Higher reporting coupled with financial restoration has been having a optimistic affect on the GST income on a constant foundation.

The finance ministry has additionally attributed the strong collections to the GST portal being glitch-free. In September, the GST portal noticed 11-million-plus e-way payments and e-invoices being generated, setting a brand new milestone.

Figures for April-September 2022. Supply: GST council