Mahakhumbh: UP GST ramps up Rs.1,000 crore for two successive months
A surge of visitors on account of Mahakhumbh contributed to Uttar Pradesh recording over Rs.1,000 crore increase in GST collections in January and February over the corresponding period last year. During the period, UP witnessed double digit growth in GST collections, which surpassed the national average of 9 per cent in February.
Uttar Pradesh witnessed a GST growth rate of 11 and 14 per cent growth in January and February, respectively, the period during which the Mahakumbh was ongoing. This brings the State almost at par with the top performing States such as Maharashtra, Gujarat, Tamil Nadu, Haryana and Karnataka, which have experienced growth rates ranging between 7 per cent and 20 per cent. UP has also performed much better in comparison with its own growth rate in the previous years. For instance, in January-February 2024, the GST growth rate was 10.8 and 8.4 per cent for the State, respectively.
The boost to the state economy will have a national impact as well. Last week, Chief Economic Advisor V Anantha Nageswaran said that a likely contributor to economic growth this year can be the “huge spending” associated with the Mahakumbh.
Sectors like travel, hospitality and local businesses boomed with an estimated over 60 crore visitors participating in the religious gathering. This surge in consumer spending is expected to meaningfully contribute to GDP growth from the expenditure side, the CEA said.
According to Prof Manmohan Krishna, Chair Professor of NITI Aayog Chair in the University of Allahabad, said visitors to the three holy cities – Prayagraj, Varanasi and Ayodhya – used digital payment mode which helped collections.
“Prices of various goods and services such as room tariffs, food etc. were high and resulted in good GST collection. Digital payments contributed to the collections,” Krishna said. The collection would have been even higher had cash transactions not been simultaneously high.
