Central GST formulation with lower no of assesses edges over States in per GSTIN collection
Despite the higher number, the per assessee or GSTIN (GST Identification Number) collection of GST by States is lower than that of the Centre. Data show that, on a Pan-India basis, the average per assessee collection by the Centre for April 2025 is approximately Rs.1.4 lakh, whereas for the States it is around Rs.1.14 lakh. This issue is likely to be discussed during the next meeting of the GST Council.
An analysis of GST collection data for April reveals that Central formulations in all States report higher per GSTIN collections. Haryana leads with over Rs.3 lakh tax payment, followed by Maharashtra.
Uttar Pradesh has maximum number of GSTINs but its per GSTIN collection is the lowest among major States.
According to Mayank Jain, Partner at Khaitan & Co, GST revenue sharing differs for inter-State and intra-State supplies. For inter-State, the Centre collects Integrated Tax (IGST) and apportions it to the consuming States, benefiting States with higher consumption. The assessee-wise collections for States vary based on consumption and tax base, while the Centre’s share remains uniform across States.
This can potentially be exacerbated on account of the delayed proceeds of Integrated GST being given to Sstates as a part of their compensation formula. “Central enforcement (DGGI, CGST Commissionerate, supported by GSTN and CBIC) is generally more efficient than state enforcement systems, which often lack the technological expertise and infrastructure for effective compliance and curbing evasion,” he said.
