Mahakumbh ripple effect: GST, VAT collections, fuel sales soar in Uttar Pradesh
The Prayagraj Mahakumbh, the 45-day mega religious event that concluded on February 26, not only drew 66 crore (660 million) pilgrims but also generated a significant economic footprint across Uttar Pradesh.
The event led to a sharp rise in tax collections across the sectors as well in fuel sales, helping the Uttar Pradesh government earn an additional around Rs. 500 crore revenue as Goods and Services Tax (GST)/Value Added Tax (VAT).
According to official data accessed by the HT, the government collected Rs. 239.47 crore in taxes from just a few sectors related to the Mahakumbh in January and February 2025. Prayagraj alone accounted for Rs. 146.4 crore, the highest among all zones. Simultaneously, the Indian Oil Corporation reported an average 36.25% increase in petrol and diesel sales in the district during January and February — a direct outcome of the heightened mobility and logistics demand.
“The Mahakumbh has contributed around Rs. 500 crore additional GST/VAT to the state exchequer, showing the scale of activities during the event,” a senior state tax department official said.
The tax increase spans key sectors, including railways, air travel, hotels, tent houses, advertising and civic bodies. In Prayagraj, tax receipts stood at Rs. 76.75 crore in February (January revenue paid in February) and Rs. 65.81 crore in March (February tax paid in March) along with Rs. 2.15 crore collected as TDS (Tax Deducted at Source).
“Railways alone contributed Rs. 124.6 crore ( Rs. 68.79 crore in February and Rs. 55.81 crore in March), while tent houses and advertising generated Rs. 9.38 crore, and the hotel sector Rs. 7.12 crore. Contributions also came from departments such as PWD and Nagar Nigam,” the official said, citing the data.
