GST collections see wide divergence across top States in GST 2.0 regime
In the GST 2.0 regime, which brought in major rate cuts to the tax, Gujarat and Karnataka have managed to grow their collections faster compared to Maharashtra, Tamil Nadu and Uttar Pradesh, among the top States.
The two States grew their post-settlement GST (the sum of GST revenues of the States/UTs and the SGST portion of the IGST settled to the States/UTs) at 28 per cent and 23 per cent y-o-y, respectively in April-August 2026. In comparison, Maharashtra (18 per cent), Uttar Pradesh (17 per cent) and Tamil Nadu’s (16 per cent) growth was on par with the national average of 16 per cent during the period.
GST rate cuts kicked in on September 2025, and the collections in this fiscal year have come after significant cuts across several items such as everyday essentials, electronics, vehicles, and construction materials, among others. Experts say the divergence in State-wise GST collections and differential impact of the GST rationalisation stems from different economic profile and tax bases of the States along with differences in compliance efficiencies.
