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North eastern states witness over 30 per cent growth in April-July GST collection.

Date: 16-08-2019
Subject: North eastern states witness over 30 per cent growth in April-July GST collection
North eastern states registered over 30 per cent growth in GST collection during the first four months of the current fiscal 2019-20, much more than the increase witnessed in larger manufacturing states. Growth in Goods and Services Tax (GST) collection recorded by most of the seven sister states is over three times the national average of 9 per cent. In absolute terms, the total tax collection during April-July of this fiscal year rose to Rs 3.56 lakh crore, as per the data accessed by PTI.

Among the north eastern states, Nagaland registered highest growth of 39 per cent at Rs 393 crore during April-July period, the data revealed. It was followed by Arunachal Pradesh with 35 per cent growth at Rs 514 crore and Sikkim with 32 per cent increase to Rs 370 crore. While Meghalaya clocked a growth of 30 per cent in GST collection at Rs 680 crore, Mizoram’s growth was a tad lower at 27 per cent with Rs 350 crore collection.

The laggard states of Tripura and Manipur too registered 16 per cent growth, more than double of large industrial states like Maharashtra, Haryana and Gujarat. Out of 37 states and union territories, Delhi, Lakshadweep and Puducherry registered de-growth of 2 per cent, 17 per cent and 8 per cent respectively. GST collection of Delhi declined to Rs 12,700 crore during April-July 2019, compared with a little under Rs 13,000 crore a year ago.

According to experts, Delhi has been adversely hit as the tax arbitrage on central sales tax (CST) has ended. In the past, Delhi imposed a lower CST of 1 per cent, prompting many companies to ship goods from the union territory by locating their offices here. Big states like Maharashtra and Gujarat recorded a single-digit growth of 6 per cent in GST collection. Punjab clocked 7 per cent growth, while Haryana’s growth was at 9 per cent.

Tamil Nadu and Karnataka recorded 10 per cent and 11 per cent growth in GST collections, respectively. In contrast, consuming states like Bihar, Odisha, Uttar Pradesh and Madhya Pradesh are faring better than the industrial states with double-digit growth

Source: economictimes.indiatimes.com

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