Gujarat’s GST mop-up in August third highest in India
In August, Gujarat’s GST collection amounted to Rs 9,765 crore, marking a 12.4% increase compared to the same month last year when it was Rs 8,684 crore. The notable growth in tax collection, encompassing SGST, IGST, and CGST revenues along with cess collection, can be attributed to several factors, including escalating raw material costs, higher prices of essential and other commodities, and an upswing in demand in anticipation of the festive season.
SGST revenue reached Rs 4,933 crore during the month, a 22% increase from Rs 4,054 crore in August 2022. Additionally, the state collected Rs 2,514 crore in value-added tax (VAT) on non-subsumed items such as fuel and liquor.
Industry experts attribute this rise in tax collection to inflationary pressures and increased consumption due to the festive season. “Inflation remained significantly high during the month. Therefore, effective tax collection on products will automatically be higher. However, consumption across goods and services also rose thanks to the onset of the festive and increment seasons. As a result, overall tax collection rose,” said an industry source.
“Tax revenue will continue to rise in the coming months as the festive season drives consumption across the state,” the source added.
In the current fiscal year, Gujarat’s total income from GST and VAT reached Rs 49,968 crore.
